India is considering reducing the floor price for basmati rice exports and changing the 20 per cent export tax on parboiled rice to a fixed duty. This comes as rice inventories in the Asian country have reached a record high. The measures were initially put in place in 2023 and have continued into 2024 to stabilise local prices before the general elections in April-May. India, the world's largest rice exporter, is poised to relax restrictions on rice exports in a bid to manage record-high stockpiles and maintain its market share. The current minimum export price (MEP) of $950 per metric ton is expected to be lowered to a range of $800-$850, in a move aimed to boost basmati rice exports. India and Pakistan are the leading exporters of basmati rice, with India typically exporting over four million metric tons annually to countries like Iran, Iraq, and the United Arab Emirates. Sources also anticipate the removal of the 20 per cent export tax on parboiled rice. Additionally, a minimum export tax on parboiled rice shipments is being considered to address potential under-invoicing. These changes follow earlier reports by Reuters suggesting the Indian government was exploring ways to ease rice export restrictions, potentially including resuming white rice exports. Attribution: Reuters
