APEDA Steps In to Monitor Undercutting Basmati Rise Practices

India’s average export offer price for Basmati rice has fallen from USD 1,04 per kg in 2024 to around USD 0,875 per kg in 2025. The drop is a strategic attempt to attract more international buyers, but it’s also eroding exporter earnings and raising concerns over quality compromises.

The government had removed the minimum export price (MEP) of USD 0,95 per kg in September 2024. Since then, prices have slid further. Some shipments to Iran have been reported at prices below USD 0,70 per kg, while average prices in the UAE and Saudi Arabia remain slightly higher, between USD 0,90–0,95 per kg.

Recent Basmati Export Prices

Market Pressure and Quality Risks Rise

Exporters who purchased Basmati paddy at high domestic prices are now under pressure to fulfill contracts at lower international rates. This pricing mismatch is straining margins and has led to fears of potential quality dilution, such as mixing non-Basmati rice to meet export volumes.

India continues to face competition from Pakistan, a major player in the Basmati segment. Experts warn that undercutting may harm India’s long-standing reputation in global markets if quality standards are not rigorously enforced.

APEDA Initiates Corrective Action for Basmati Export Prices

In response to industry concerns, APEDA has begun reaching out to exporters with underpriced contracts. The aim is to control the flow of low-cost shipments that may affect the overall market. Industry experts are urging the government to either reintroduce the MEP or implement strict quality control regulations to maintain the credibility and profitability of Indian Basmati rice exports.