Rice Rivalry Intensifies as India and Pakistan Lift Export Restrictions
The battle for rice supremacy has intensified as India and Pakistan both lifted export curbs, leading to a significant drop in global rice prices.
On Saturday, India announced the removal of its ban on non-Basmati white rice exports, a restriction that had been in place for over a year. This move comes in light of a larger crop yield expected in 2024, which has bolstered state reserves to meet domestic needs.
The announcement followed closely on the heels of Pakistan’s decision to eliminate the minimum export price (MEP) for all rice varieties, a policy that had set prices at $1,300 per metric tonne for Basmati and $550 for non-Basmati rice since 2023. Pakistan’s choice to scrap the MEP was influenced by India’s earlier decision to lift its own MEP for Basmati rice, set at $950 per metric tonne.
As the two South Asian rivals compete in the global rice market, concerns are rising among exporters about a potential pricing war. With both countries being the sole producers of Basmati rice, renowned for its distinct flavor and aroma, the stakes are high in this burgeoning market rivalry.
