UAE, Saudi Arabia, Kuwait, Qatar

India lifts rice curbs — locked basmati contracts now 8–12% above market

India removed the basmati MEP and lifted the non-basmati white-rice ban within two weeks of September 2024. Parboiled duty was cut from 20% to 10%. GCC importers locked at the old ceiling were suddenly 8–12% above market.

  • Rice
  • Basmati
  • India
  • Tariffs

What happened

India removed the basmati Minimum Export Price (MEP) and lifted the non-basmati white-rice ban within two weeks in late September 2024. Parboiled rice export duty was cut from 20% to 10%.

Exposure

Distributors holding Basmati 1121 (BAS-1121) Aug–Sept contracts with KRBL and LT Foods at $1,200/MT found themselves 8–12% above the post-deregulation spot market.

What to do

Reopen KRBL and LT Foods contracts this week. Pivot 5% white-rice volume to Indian origin — landing $25–39/MT below Thai and Vietnamese equivalents.

Runway

~14 days before competitors repriced their shelves.

Plan for

Andalusian olive harvest recovering after two drought years

What's coming. Groundwater rose through summer 2024. Deoleo, Acesur and Sovena guided to a substantially larger 2024/25 crush.

What to do. Defer Q1 2025 EVOO contracts. Renegotiate against the December crush print — expect 15–20% downside from $9,200/MT spot.

Cocoa easing from peak — push co-packers for cost adjustments

What's coming. Cocoa down from $11,700 peak. World Bank projects Côte d'Ivoire 2024/25 output up 17% on favorable weather.

What to do. Reopen Q1 2025 co-packed chocolate SKU pricing — input cost no longer at peak.

Sources

  1. [1]DGFT Notification — removal of MEP on Basmati rice (Sep 2024)
  2. [2]Reuters — India scraps basmati floor price, lifts white-rice export ban

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