Domestic rice stocks hit a new high India or reduce the minimum export price of fragrant rice

New Delhi: Authorities are likely to lower minimum prices for basmati rice exports and remove a 20 per cent export tax on steamed rice as domestic rice stocks hit record highs, government sources said.

India is the world's largest rice exporter, but authorities imposed various restrictions on the country's rice exports in 2023 and continued them this year in a bid to control local prices.

Reuters reported on Thursday (July 18), citing government sources, that New Delhi is expected to lower the minimum export price for basmati rice, also known as basmati rice, from US $950 (about S $1,273) per metric ton to US $800 to US $850 per metric ton to boost shipments.

Lowering minimum export prices will help India maintain market share against Pakistan. Pakistan's rice exports have hit a record high this year due to export restrictions imposed by New Delhi. Both countries are major exporters of Basmati rice.

India is also expected to remove a 20 per cent export tax on steamed rice, commonly known as semi-cooked rice, and introduce a minimum export tax to discourage under-reporting of shipments, the sources said.

Reuters reported last month that the government was studying the possibility of easing restrictions on rice exports, including resuming white rice exports.

India is also the world's second largest sugar exporter. Malaysian authorities have asked India to ease export restrictions on some agricultural products such as rice and sugar.

Malaysia's Minister of Agriculture and Commodities, Johari Abdul Ghani, said India's sudden test of export restrictions on agricultural products is not good for Malaysia, and "if India loosens the restrictions, it will be good for Malaysia."

India is Malaysia's main source of sugar, rice and Onions, while Malaysia is India's second-largest source of palm oil.