India removes minimum export price on non-basmati white rice

India scrapped the Minimum Export Price (MEP) of $490/mt on non-basmati white rice under HS Code 1006 30 90, the Ministry of Commerce & Industry said Oct. 23.

Market participants hailed the MEP removal as a significant advantage for Indian non-basmati rice exports. They expect that this move will not only boost India’s export potential but also make Indian white rice more competitive globally.

The notification followed the government's announcement on Oct. 22 about lifting the 10% export duty on parboiled rice and stated that the MEP on “non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or glazed)” was lifted with immediate effect.

In September, India reduced the export duty on parboiled rice from 20% to 10%, lifted the ban on non-basmati white rice exports and introduced the MEP of $490/mt in response to swelling granaries and a bumper harvest expected from the upcoming Kharif season crop.

India's white rice prices to become more competitive

At MEP, Indian white rice was losing its competitiveness to other origins such as Pakistan.

Platts, part of S&P Global Commodity Insights, assessed Indian 5% white rice at $490/mt FOB on Oct. 23, at a premium of $13/mt over Pakistani 5% WR, while remaining at a discount of $10/mt to Myanmar 5% WR, $15/mt to Thai 5% WR and $33/mt to Vietnamese 5% WR.

A trader noted that Indian white rice has begun receiving orders, replacing Myanmar and Vietnam in African markets, indicating increased demand due to eased export restrictions.

This period coincides with an influx of fresh crop harvests from all origin markets, including India, which anticipates a bumper harvest.

India is forecast to export 20.5 million mt of rice in the marketing year 2024-25 (October-September), up 37% year-over-year, according to Commodity Insights data.