NEW DELHIMUMBAI, Sept 24 Reuters India39;s decision to remove the floor price for basmati rice exports is expected to spur a flurry of orders from the Middle East, Europe, and the Americas, leading exporters said, helping New Delhi to increase its share of the global market.
The world39;s biggest rice exporter earlier this month removed a floor price of 950 a metric ton for basmati rice, weeks ahead of the arrival of the new season crop.
This policy change has enabled Indian exporters to offer basmati rice at more competitive prices globally, which is likely to drive higher export volumes, Akshay Gupta, head of bulk exports at KRBL Ltd, told Reuters.
The minimum export price MEP posed a barrier to exporting certain basmati rice grades, and its removal has opened up opportunities for global buyers to access the full range of options, said Gaurav Bhatia, director at DD International, one of the top basmati rice exporters.
India and Pakistan are the only growers of premiumgrade basmati rice, and the Indian restrictions helped Pakistan gain market share in some categories.
However, with the removal of the MEP, India will be able to reclaim that lost share, said Dev Garg, the director of ViExport, a New Delhibased exporter.
India39;s basmati rice exports during April to July, the first four months of the fiscal year, jumped 20 from a year ago to 1.9 million metric tons despite the MEP.
The country exported a record 5.2 million tons of rice last fiscal year as Canada,…