NEW DELHI, Feb 2: India is likely to lower floor price for basmati rice exports to help traders, Commerce Secretary G K Pillai told reporters on Monday.

Last month, the government reduced the minimum price at which exports are allowed to $1,100 per ton from $1,200 per ton, but Indian exporters, who have faced defaults from buyers as prices fell, said the cut was inadequate.

“When basmati rice exports are free, high export price doesn’t make sense. There is a demand to lower the export price and there is a room for that,” Pillai said.

“Pakistan is selling at much lower price, making us uncompetitive,” he said. Falling prices have encouraged the government to gradually relax some of the restrictions, but analysts say a more liberal trade regime may be allowed only after general elections likely in April and May. —Reuters