Global Rice News

Central Government Lowers Minimum Export Price of Basmati Rice

The Central government has made the decision to lower the minimum export price or the floor price of basmati rice. Previously set at $1,200 (Rs 99,886) per tonne, the new minimum export price has been reduced to $950 (Rs 79,076) per tonne. This decision was taken after the higher minimum export price was found to affect the exports of basmati rice. The Union Commerce Ministry has communicated this decision to APEDA (Agricultural and Processed Food Products Export Development Authority), who will now register only those contracts worth $950 per tonne and above. APEDA is responsible for promoting the export of agricultural commodities and processed food products.

Basmati Rice Exporters Demand Reduction in Minimum Export Price

In response to the higher minimum export price, basmati rice exporters and mill owners in Haryana and Punjab went on strike, demanding a reduction in the floor price. As a result of the strike, the prices of various varieties of basmati paddy had significantly decreased. However, the strike came to an end after the government assured all stakeholders that the minimum export price would be reduced.

It is worth noting that on August 27, the government made the decision to prohibit the export of basmati rice priced below $1,200 per tonne. This was done in order to prevent the illegal export of white non-basmati rice being falsely labeled as premium basmati rice. The Rice Exporters Association had been requesting a reduction in this base price for the past two months. The association believed that India was losing its competitive edge in the export market, particularly to neighboring countries like Pakistan. They argued that India’s average export realisation in the past two to three years has only been $800-900 per tonne.

Government’s Response to Concerns

Rajya Sabha members, including Vikramjit Singh Sahney from Punjab, had expressed their concerns regarding the $1,200 per tonne minimum export price on basmati rice. Sahney urged the Centre to rationalize this price as it was negatively impacting shipments. Commerce and Industry Minister Piyush Goyal addressed this issue in a press conference on October 6. He stated, “We are very seriously looking at it. I have had many meetings with rice exporter associations in India. We have compiled data on basmati rice exports to different parts of the world and different varieties of basmati rice.”

For more information on rice exporters and suppliers, visit https://www.hasrice.com and https://www.pakistanrice.com.

Source: https://www.news18.com