govt-lifts-floor-price-on-basmati-rice-exports

Economy

Govt lifts floor price on Basmati rice exports

The export floor price for basmati rice was removed to boost competitiveness and address trade concerns, having initially been set at $1,200 per metric ton in August 2023 and later reduced to $950 per metric ton to manage domestic prices and prevent misclassification.

News Arena Network - New Delhi - UPDATED: September 14, 2024, 02:59 PM - 2 min read

Government has removed the $950 a tonne minimum export price (MEP) on basmati rice after coming under pressure due to falling paddy prices.

In a major move to boost the export of basmati rice, the Government of India has decided to remove the floor price on the export of this premium GI variety.

The decision follows ongoing trade concerns and a sufficient domestic supply of rice. The Agricultural and Processed Food Products Export Development Authority (APEDA) will oversee export contracts to ensure transparency and prevent unrealistic pricing practices.

A floor price of $1,200 per metric ton (MT) was initially introduced in August 2023 as a temporary measure to address rising domestic rice prices and prevent the misclassification of non-basmati rice as basmati rice amid an export ban on Non-Basmati White rice.

This floor price was later reduced to $950 per MT in October 2023 in response to feedback from trade bodies and stakeholders.

With the removal of this floor price, the government aims to enhance the competitiveness of Indian basmati rice in the global market.

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govt-lifts-floor-price-on-basmati-rice-exports