Indian exporters are currently contracting basmati rice at $1,200 a tonne, about 9 per cent higher than last year, following increased demand for superior varieties of the grain. Exporters had sold the premium quality rice at $1,100 per tonne last September.
According to trade sources, out of every 10 contracts signed, at least six are being inked at $1,200 a tonne. Only in two cases exporters agreed to ship the rice at a minimum export price (MEP) of $900 a tonne.
Traders are contracting basmati rice at a marginally higher price this year. And since there are a number of varieties available, the contracts are being signed "at varied rates,'' a Chandigarh-based exporter said.
He, however, added that the current contract at $1,200 a tonne is being signed on the condition that the prices would be "re-negotiated'' if basmati prices fall or rise by more than $ 50 a tonne.
The government recently lowered the minimum export price (MEP) of basmati rice to $900 a tonne from $1,200 a tonne to help Indian exporters compete with their Pakistani counterparts in the international market.
Basmati rice is grown only in India and Pakistan.
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