The Indian govt. has eliminated the $950 per metric ton floor price, which is the minimum bidding price for basmati rice exports. This move is expected to boost orders from the Middle East, Europe, and the Americas, thereby further increasing India’s global market share. As the world’s largest rice exporter, this policy change allows Indian exporters to offer basmati rice at more competitive prices. India and Pakistan are the only producers of premium-grade basmati rice; previous Indian restrictions allowed Pakistan to gain market share in some categories. Exporters like Akshay Gupta of KRBL Ltd and Gaurav Bhatia of DD International noted that the removal of the Minimum Export Price (MEP) opens up opportunities for global buyers. However, Panjab is facing a significant storage crisis ahead of its paddy procurement season. The state has concerns over where to store 18.5M metric tonnes (MT) of paddy worth $5.8B set to be purchased from 1 Oct. This procurement will generate around 123 MT of rice, but with granaries already filled with stocks of rice and wheat from previous years, finding storage space is proving difficult. Bharat Bhushan Binta, president of the Punjab Rice Industry Association, raised concerns about the effectiveness of leasing additional warehouses, noting that many rice-consuming states are now self-sufficient. Recently, a delegation from the Punjab Rice Millers association met CM Mann, who assured the issues with the Center would be addressed.
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