Intense competition expected between India and Pakistan in global rice export market
03-Oct-2024 02:14 PM
Abu Dhabi. The Indian government's decision to free non-Basmati white rice from export ban, drastically reducing export duty on Sela rice and withdrawing the minimum export price (MAP) fixed for Basmati rice has not only increased the challenge for exporting countries like Thailand, Vietnam and Myanmar but has also increased the threat for Pakistan.
Now, especially for Basmati rice, the competition between India and Pakistan will increase rapidly in the global export market. For the last one year, India had a MAP of $ 950 (earlier $ 1200) per tonne for Basmati rice,
which was giving special benefit to Pakistan, but now it will be on the backfoot. Because Indian exporters will also now be able to contract the export of their Basmati rice at a competitive price.
Due to the change in the rice export policy in India and Pakistan, on the first day of the current week, the price of rice in different varieties and categories was recorded to have fallen in the global market.
India is the world's largest exporter of rice, so any policy change here has a direct and profound impact on the global market.
With sufficient stock available in government warehouses and the expectation of increased Kharif production, the Centre has liberalised the rice export policy.
Although a MAP of $490 per tonne has been fixed for white non-Basmati rice and a 10 per cent export dry run has been imposed on Sela rice, this will not have any adverse effect on the export shipment of Indian rice.
On the other hand, the Pakistan government has also announced the withdrawal of the minimum export price fixed for all varieties of rice.
There, a MAP of $1300 per tonne was applicable for Basmati rice and $550 per tonne for non-Basmati rice. It is noteworthy that Basmati rice is produced only in India and Pakistan and is also exported from here.
In a notification issued on September 28, the Commerce Minister of Pakistan had said that it has been decided to withdraw the minimum export price (MAP) on the request of the Rice Exporters Association.