Sources say India will ease rice export curbs as stocks reach record highs

New Delhi: India is likely to cut the floor price for basmati rice exports and replace the 20% export tax on parboiled rice with a fixed duty on overseas shipments, government sources said, as rice inventories in the country jumped a record high.

This came after the world’s largest rice exporter imposed various curbs in 2023 and 2024 in an attempt to reduce domestic prices ahead of the general elections held in April-May. As well as rising concerns of lower output due to El Nino weather pattern.

New Delhi is expected to lower the basmati rice’s minimum export price (MEP) to $800-$850 a metric ton, down from $950 a ton, to boost shipments, according to a report by Reuters. The move is expected to help India retain its market against Pakistan which saw a record export due to India’s export curbs.

India exports more than 4 million metric tons of basmati to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States.