Pakistan can capture International rice market: Indian Exporters in fear

NEW DEHLI, Oct 17 (EPI): The exporters have raised questions on Indian government for maintaining the current floor price for basmati rice, stating that the move would allow Pakistan to capture the International market.
It is noteworthy that India and Pakistan are the only growers of basmati rice.
The farmers find themselves in a frustrating predicament,” said a leading exporter who asked not to be named, adding that we are empowering Pakistan to seize control of the basmati rice market in the short term.”
India, the world’s biggest rice exporter, has also curbed exports of non-basmati rice varieties in an attempt to keep a lid on domestic prices ahead of key state elections.
Sukrampal Beniwal, who grows basmati varieties in India said that we are staring at massive losses, adding that we have harvested our crop, but there are no buyers.”
Farmers, millers and exporters had believed the government would lower the MEP, which they consider too steep, as the new-season crop comes to market.
It is worth mentioning here that New Delhi exports more than 4 million metric tons of basmati the premium long-grain variety famed for its aroma, to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States.
New Delhi set a floor price, or minimum export price (MEP), of $1,200 a ton in August. It was expected to cut this MEP but the government has said it would maintain the floor price until further notice.