Traders of basmati rice are concerned that the enforcement of a minimum export price (MEP) of $1,200/tonne by the Indian government will lead to a decline in sales overseas. The All-India Rice Exporters' Association (AIREA) has stated that this MEP will act as a deterrent to exports. More than 80% of basmati rice exported was sold at rates lower than this MEP. Traders fear that export volumes will decline, which will negatively impact the income of basmati farmers. The government claims that the average price of basmati exported in August was $1,214/tonne, while AIREA argues that it was $1,106/tonne in the first quarter of 2023-24.