India rice traders against export price hike

Indian rice exporters have asked the government not to raise the floor price for overseas sale of aromatic basmati variety, the Hindu Business Line newspaper said on Thursday.

Basmati, a premium grade, is not consumed widely within the country, V.K. Arora, president of the All India Rice Exporters Association, told the paper.

India, the world's second-biggest producer, in September cut the minimum export price of basmati to $900 per tonne from $1,100 per tonne.

Analysts believe the government may raise the export price to restrict overseas sales after poor monsoon rains hit the summer-sown harvest.