INDIA- The Indian government has announced that it will maintain the floor price for basmati rice exports until further notice as the world’s biggest exporter continues to curb overseas shipments of this grain.
India imposed a US$1,200 per ton minimum export price (MEP) on basmati rice shipments in August to calm local prices ahead of key state elections.
A government order on Saturday said it would maintain the MEP, initially in place until Sunday, until further notice.
The South Asian country in July banned exports of non-basmati white rice and on Friday imposed a 20% duty on exports of parboiled rice.
The MEP aims to help authorities ensure that non-basmati rice is not exported as basmati rice.
Meanwhile, India will allow exports of non-basmati white rice to Nepal, Cameroon, Malaysia, Philippines, Seychelles, Ivory Coast, and the Republic of Guinea, a government notification showed on Wednesday.
India in July banned exports of non-basmati white rice and later imposed a 20% duty on exports of parboiled rice.
Prices of parboiled rice from India dip as export duty expires
In other news, the price of India’s 5% broken-parboiled rice has declined, with the range falling from US$520 to US$530 to US$515 to US$525 per metric ton this week.
This is due to buyers who are hesitant to purchase while the uncertainty surrounding the expiration of export duty looms over their heads.
According to a Mumbai-based dealer, the government has yet to decide whether they will allow duty-free exports after October 15.
In August, India imposed a 20% export duty on parboiled rice that would be effective until October 15, affecting its shipments and pushing global rice prices.
However, an Indian government official recently announced that they intend to extend the 20% export duty on parboiled rice until March 2024.
Conversely, Thailand’s 5% broken rice rose to US$580-US$600 per metric ton due to higher domestic prices and baht appreciation, while Vietnam’s 5% broken rice was offered at US$615-US$625 per metric ton after seeing a hike in demand from Indonesia and shrinking supplies from the summer-autumn harvest.
Nonetheless, tensions in Gaza could keep rice prices at high levels. Despite the volatility in the global market, domestic rice prices in Bangladesh remain high and the country does not require imports.