Centre reduces basmati export floor price to $950 per tonne: What you need to know
Published on: October 27, 2023.
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The Centre has responded to the demands of basmati rice exporters by reducing the floor price for basmati rice exports. The floor price has been lowered from $1,200 per tonne to $950 per tonne. This decision was made in order to address concerns raised by exporters about the elevated floor price impacting exports negatively. The Union commerce ministry communicated the revised price limit of $950 per tonne for basmati rice export contracts to APEDA.
Previously, the Centre had increased the floor price for basmati rice exports in order to control the export of rice falsely labeled as basmati. Rice exports were also banned temporarily to ensure an adequate supply of rice within India due to uneven rains caused by the El Nino effect during this year’s Monsoon Season.
India is the leading exporter of basmati rice globally, as reported by the Agricultural and Processed Food Products Export Development Authority (APEDA). There are a total of 34 varieties of basmati rice. The main cultivators of basmati rice in India include Jammu and Kashmir, Himachal Pradesh, Punjab, Haryana, Delhi, Uttarakhand, and Western UP. The major export destinations for Indian basmati rice are Saudi Arabia, Iran, Iraq, UAE, and Yemen. Among Indian states, New Delhi is the largest basmati rice exporter, with 4 million tonnes of shipments. Districtwise, basmati rice is renowned from areas such as Karnal, Panipat, Kurukshetra, Kaithal, Amritsar, Fatehgarh, Gurudaspur, Hoshiarpur, Jalandhar, Patiala, and Ropa.
Basmati rice is characterized by its extra long and slender grain, distinct aroma, superior taste, and unique flavor. To ensure an adequate supply of rice, the Centre had previously banned the export of non-basmati rice and imposed a $1,200 per tonne floor price on basmati rice exports. Additionally, a 20% duty was levied on the export of parboiled rice.
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