New Delhi: European Union's (EU) proposed new rice regime, under which tariff rate quotas for various countries will be fixed, is expected to benefit the US at India's cost affecting its exports of 'basmati' (a variety of Indian rice), which have shown an up trend in the last few years.

India is now in a quandary whether to try postponing negotiations on the subject or press for a quota for its white 'basmati', since white 'basmati', which fetches a price around $ 200 a tonne higher than brown 'basmati', official sources said. India is also a major supplier and its brown 'basmati' exports to the EU have increased to 1.40 lakh tonnes in 2001-02 from 40,000 tonnes in 1995-96.

Officials said India stands to lose under the new regime providing for a fixed quota of 1.55 lakh tonnes, as this will prevent further growth of the country's exports of the commodity to the EU.

Status quo of market share of rice exporting countries under a new regime will benefit the US, whose share India has been gradually been nibbling in the past few years.

The US is a substantial supplier of rice to the EU and has close to 25 per cent share in the region's imports of a million tonnes.

India is also a major supplier and its brown basmati exports to the EU have increased to 1.40 lakh tonnes in 2001-02 from 40,000 tonnes in 1995-96.

PTI