India’s basmati rice exports may drop to a three-year low this year as the European Union tightens a fungicide rule and local prices strengthen. Exports may decline as much as 5% to 3.79 MMT in the year than began on April 1 from a year earlier, that would be the lowest since 2014-15. According to the European Union’s rule, the residue level of Tricyclazole fungicide in basmati rice should not exceed 0.01 parts per million from 1 January 2018, compared with 1 part per million currently. About 80% of India’s basmati rice shipments include unpolished grains. The rest is sold after polishing, which significantly lowers fungicide residues.