Kenya is one of four African nations facing high rice prices as a result of India’s introduction of a Minimum Export Price (MEP) on Sunday.
In order to crack down on dealers who were exporting regular rice branded as Basmati, a premium variety, the Indian government established the cap at Ksh171,000 (USD 1,200) per tonne.
“The MEP will help authorities ensure that non-Basmati rice is not exported as Basmati rice,” India explained its rationale.
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India provided an explanation for its decision, claiming that certain dealers began packaging their rice as basmati to get around the ban on non-basmati white rice exports that went into effect in July of this year.
Following the Asian nation’s prohibition on all non-Basmati types, which make up 80% of its total rice shipments, Kenya and other nations that profit from imported Indian rice began noting price spikes.
Only 20% of its exports are of the high-end, fragrant Basmati rice because of its high cost; the majority of this variety is sent to Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates, and the US.
