India removes floor price for basmati rice exports

NEW DELHI, Sept 15 (Reuters): India removed a floor price for basmati rice exports on Friday, according to a government order, to help farmers boost overseas sales of the premium grade just weeks ahead of the arrival of the new-season crop.

Last year New Delhi set a floor price, or minimum export price (MEP), of $1,200 a metric ton and later cut the MEP to $950 a ton.

As supplies picked up since then, exporters urged the government to either cut or remove the MEP to ensure that farmers do not get saddled with large stocks when the new-season crop arrives in a month's time.

India and Pakistan, the only growers of basmati, both try to promote the premium grade of rice in a manner similar to French Champagne or Darjeeling tea.