Huge fall in export offer price of Basmati rice
19-Mar-2025 01:14 PM
Sharp Decline in Basmati Rice Export Prices Raises Concerns
Key Highlights:
- Export Price Drop:
- 2023: $1,040 per tonne
- 2024: $875 per tonne (a significant decline)
- Reason for Price Drop:
- Exporters are lowering prices to secure orders in a competitive market.
- Pakistan remains a strong competitor in Basmati exports.
- Impact on Exporters:
- Exporters who purchased paddy at high prices expecting strong demand are now facing losses.
- Some are shipping rice at prices below $700 per tonne to Iran.
- Government & APEDA's Concern:
- Lower prices may lead to quality compromises, such as mixing Basmati with non-Basmati rice, harming India's reputation.
- APEDA is monitoring contracts but faces resistance from exporters.
- Possible Solutions:
- Reintroducing a Minimum Export Price (MEP) to prevent undervaluation.
- Strict quality control measures to maintain India's premium Basmati brand.