Government removes floor price on basmati rice

The government on Friday said the USD 950 per tonne minimum export price (MEP) on basmati rice has been removed. Commerce and Industry Minister Piyush Goyal said the move will help boost exports and increase farmers' income.

"It has been decided to remove current minimum export price (MEP) of USD 950 MT for issuing Registration-cum-Allocation Certificates (RCAC) for export of Basmati Rice," according to a communication from the Department of Commerce.

The APEDA (Agricultural and Processed Food Products Export Development Authority) was requested to take immediate action to implement the decision.

Add Zee Business as a Preferred Source

However, it added that APEDA will closely monitor export contract for any non-realistic prices for basmati exports.

Earlier in October last year, the government reduced the floor price for basmati rice exports to USD 950 per tonne from USD 1,200 per tonne amid concerns that higher prices were hurting outward shipments.

The government on August 27, 2023 decided not to allow exports of basmati rice below USD 1,200 per tonne to restrict possible "illegal" shipment of white non-basmati rice in the garb of premium basmati rice.

India's total exports of basmati rice stood at USD 4.8 billion in 2022-23 in terms of price, while in volume terms it was at 45.6 lakh tonne.

It was USD 5.9 billion in 2023-24.

As per the Foreign Trade Policy, APEDA is mandated to register all contracts for the export of basmati rice and then it issues registration-cum-allocation certificate for the export of basmati rice.