Indian exporters are currently contracting basmati rice at USD 1,200 a ton, about 9% higher than previous year, following increased demand for superior varieties of the grain. Exporters had sold the premium quality rice at USD 1,100 per ton last September, reports Business Line.
According to trade sources, out of every 10 contracts signed, at least six are being inked at USD 1,200 a ton. Only in two cases exporters agreed to ship the rice at a minimum export price (MEP) of USD 900 a ton.
Recently, the government lowered the minimum export price (MEP) of basmati rice to USD 900 a ton from USD 1,200 a ton to help Indian exporters compete with their Pakistani counterparts in the international market.
India and Pakistan are the two countries where basmati rice is grown.
Source : myiris.com