NEW DELHI (Commodity Online): Indian rice exporters to cherish as the the Empowered Group of Ministers (EGOM) alllowed exports of non-basmati rice up to 4 million tons and also to cut down the Minimum Export Price of basmati rice.
EGOM will cut the MEP of basmati rice to $700 a ton from $900 a ton. Meanwhile, the group has also allowed exports of additional 1million tons.
The decision for additional exports has been taken on the back of record production, export demand and lack of proper storage facility in the country.
The demand for India's non-basmati rice is high in the global market as Thailand had raised the MEP which made the Thai rice costly for the importers, turning them to search for new markets.
Meanwhile, due to the depreciating Rupee against the dollar, the Indian exporters are likely to earn more profit.
India is expected to produce around 102 million tons of non- basmati rice and 26 million tons of sugar for 2011-12.
While, India is the largest producer of basmati rice in the world and is expected to produce around 7.5 million tons for 2011-12.
