Saudi firms threaten to sue Indian rice exporters

The domestic exporters have been faltering on their commitments following the imposition of an export duty on basmati rice by the Indian government, a top industry official said.

With a view to discourage exports, the Indian government imposed an export duty of Rs 8,000 a tonne on basmati rice exports. It has also lowered the minimum export price (MEP) from $1,200 to $1,000 a tonne.

"Some rice importers may exploit the situation and file lawsuits against the exporters. We are sending wrong signals as India will lose its credibility in the international market," Vijay Setia, All India Rice Exporters Association President, said.

The Indian exporters complete 75 per cent of their exports at the time of crop arrival on fixed price-fixed quantity contracts.