Government reduces basmati minimum export price by $250 per tonne
Published on: October 27, 2023.
Filed under:
Government Reduces Basmati Rice Export Price in India
In an effort to boost exports and address concerns about high prices impacting the industry, the Central government of India has lowered the floor price for basmati rice exports. The new floor price is set at $950 per tonne, down from $1,200 per tonne. This reduction comes after the government had raised the floor price in August to increase domestic availability and tackle surging food inflation.
The decision to reduce the floor price was made in response to protests from farmers and traders, who expressed concerns that the high price made Indian basmati rice less competitive compared to exporters like Pakistan. The export curbs on basmati were extended earlier this month, leading to further dissatisfaction within the industry.
Food Minister Piyush Goyal, after consulting with traders, assured industry representatives that the minimum export price (MEP) would be reviewed. To fulfill this promise, Food Secretary Sanjeev Chopra confirmed that the government is actively working on reviewing the MEP.
The hike in the MEP had negatively impacted basmati rice exports, resulting in a slowdown. From April to August, India’s basmati exports reached close to 2 million tonnes, with a value of Rs 2,200 crore. This represented a 12% increase in value compared to the same period in the previous year.
By reducing the floor price for basmati rice, the government aims to enhance the competitiveness of Indian consignments in the global market. This move is expected to reinvigorate the export industry and drive growth. It is also anticipated to bring relief to farmers and traders who were facing difficulties in the face of high prices.
Overall, this adjustment in the floor price for basmati rice exports is a strategic step towards ensuring the continued success and growth of the rice industry in India.
Source: [The Hans India](https://www.thehansindia.com)
