Basmati Rice Exports Surge 11% to $2.87 Billion After MEP Removal

Basmati rice export showed a significant 11 percent increase, amounting to $2.87 billion. The recent elimination of the $950 per tonne minimum export price (MEP) implemented in October 2023 has helped boost the increase in high-value shipments.

Government officials cited in the report stated that lifting limitations on rice exports is expected to result in a resurgence of agricultural exports in the latter half of FY25. The government lifted almost all restrictions on the export of basmati and non-basmati rice last month, which included getting rid of the MEP and export taxes.

Despite a 17 per cent decrease in exports of non-basmati rice from April to September, totaling $2.25 billion because of restrictions, experts anticipate an increase in export quantities following the elimination of duties and MEP, which will help India regain its top spot in the worldwide rice market. The business-daily quoted Akshay Gupta, business head of bulk exports at KRBL, a major basmati exporter under the ‘India Gate’ brand, stating that India’s rice exporters are better positioned to reclaim lost market share due to trade policies. The timing of these eased export measures is particularly advantageous, given the expected 10-15 per cent increase in crop yield compared to last year.

In the first half of FY25, India's agricultural sectorand processed food exports dipped slightly by 1 percent to reach $12.13 billion. This decline is credited to a significant 17 percent reduction in exports of non-basmati rice.