AIRLINK 189.50 Increased By ▲ 0.74 (0.39%)
BOP 13.04 Decreased By ▼ -0.19 (-1.44%)
CNERGY 7.20 Decreased By ▼ -0.06 (-0.83%)
FCCL 39.45 Increased By ▲ 0.74 (1.91%)
FFL 15.02 Increased By ▲ 0.18 (1.21%)
FLYNG 25.80 Decreased By ▼ -0.08 (-0.31%)
HUBC 134.35 Decreased By ▼ -0.06 (-0.04%)
HUMNL 13.47 Increased By ▲ 0.14 (1.05%)
KEL 4.57 Increased By ▲ 0.34 (8.04%)
KOSM 6.35 Increased By ▲ 0.50 (8.55%)
MLCF 47.30 Increased By ▲ 0.41 (0.87%)
OGDC 205.80 Increased By ▲ 0.06 (0.03%)
PACE 6.23 Increased By ▲ 0.15 (2.47%)
PAEL 38.52 Decreased By ▼ -0.56 (-1.43%)
PIAHCLA 16.86 Increased By ▲ 0.01 (0.06%)
PIBTL 8.00 Increased By ▲ 0.16 (2.04%)
POWER 10.70 Decreased By ▼ -0.01 (-0.09%)
PPL 174.61 No Change ▼ 0.00 (0%)
PRL 33.75 Increased By ▲ 0.07 (0.21%)
PTC 23.30 Increased By ▲ 0.22 (0.95%)
SEARL 98.25 Decreased By ▼ -0.27 (-0.27%)
SILK 1.10 Decreased By ▼ -0.02 (-1.79%)
SSGC 31.14 Decreased By ▼ -0.34 (-1.08%)
SYM 17.70 Increased By ▲ 0.04 (0.23%)
TELE 8.29 Increased By ▲ 0.23 (2.85%)
TPLP 12.30 Increased By ▲ 0.10 (0.82%)
TRG 61.71 Increased By ▲ 1.41 (2.34%)
WAVESAPP 11.81 Decreased By ▼ -0.01 (-0.08%)
WTL 1.48 Decreased By ▼ -0.02 (-1.33%)
YOUW 4.09 Increased By ▲ 0.23 (5.96%)
BR100 11,977 Increased By 59.5 (0.5%)
BR30 35,442 Increased By 123.9 (0.35%)
KSE100 113,754 Increased By 666 (0.59%)
KSE30 35,486 Increased By 176.6 (0.5%)

NEW DELHI: India has signed contracts to export about 500,000 metric tons of new season basmati rice to cash in on robust demand from top buyers in Europe and the Middle East, traders said on Wednesday.

India annually exports more than 4 million tons of basmati - a premium long-grain variety famed for its aroma - to Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States, among others.

Europe is another big market for the rice.

After imposing a ban on non-basmati white rice exports in June to stabilize domestic prices, India set a floor price, or minimum export price (MEP), of $1,200 a ton for overseas sales of basmati in August.

However, as the floor price hampered exports of the premium variety and saddled farmers with large stocks of new-season rice, the government last month cut the floor price for basmati exports to $950 per ton.

India cuts floor price for basmati rice exports to revive shipments

Trade came to a standstill after the August decision, but the lowering of the floor price has breathed new life into basmati rice trade, the traders said.

“There’s been a great deal of interest in India’s new basmati rice crop and so far we have signed export contracts for around 500,000 tonnes,” said Prem Garg, president of the Indian Rice Exporters Federation.

“Normally we start getting orders for the new crop in September and October but the MEP of $1,200 a metric ton made it difficult for us to sign any deals,” he said.

Indian traders have signed basmati export deals between $1,000 and $1,500 a metric ton, two exporters including Garg said.

Turkey, Iraq and Saudi Arabia are top buyers of the rice so far this year, aid Vijay Setia, a leading exporter from Haryana, a top basmati rice producing state in the north.

“Despite the MEP of $950 a metric ton, it looks like we’ll be able to export our usual annual volume of around 4 million metric tons,” Garg said.

Comments

Comments are closed.