New Delhi, Sep 14 || In a significant step to boost export of basmati rice, a premier GI variety rice of India, the government has removed the floor price on export of basmati rice, a move that will ensure good returns to farmers.
According to the ministry communication, it has been decided to remove the current minimum export price (MEP) of $950 MT for issuing registration-cum-allocation certificates (RCAC) for export of Basmati rice.
The Agricultural and Processed Food Products Export Development Authority (APEDA) will closely monitor export contracts to prevent any non-realistic pricing of basmati rice and ensure transparency in export practices, according to the Ministry of Commerce and Industry.
The decision came in response to ongoing trade concerns and adequate domestic availability of rice.
A floor price of $1,200 per metric tonne (MT) was introduced in August last year as a temporary measure in response to rising domestic rice prices in the wake of tight domestic supply situation of rice and to curb any possible misclassification of non-basmati rice as basmati rice during exports, in view of the export prohibition on non-basmati white rice.
After discussions with the trade bodies and stakeholders, the government had then rationalised the floor price to $950 per MT in October 2023, amid concerns that higher prices were hurting outward shipments.