India rice traders want easing of export curbs as competition from Pakistan stiffens
Rice traders have told Indian authorities their exports are becoming uncompetitive against Pakistan in terms of price
Indian traders have asked the government to either scrap a minimum export price of US$950 per tonne on premium basmati rice or lower it to US$750 per tonne in anticipation of a bumper crop, All India Rice Exporters Association (AIREA) vice-president S Jain told This Week in Asia on Monday.
Presently, India allows only exports of basmati and parboiled varieties, subject to a 20 per cent export tax imposed last year to prevent any shortages in the domestic market amid fickle weather. It has banned exports of non-basmati or more common varieties.
India accounts for around 40 per cent of global rice shipments and exports to more than 150 countries. About 30 per cent of its shipments – or 12 per cent of total global trade of the commodity – were affected after New Delhi banned exports of white rice and broken varieties last July, except for shipments to address food-security concerns of other countries.
The export curbs were seen as a politically linked measure to curb inflation ahead of the national elections held earlier this year.
