“Government considers revising free-on-board value for Basmati rice export registration”
Published on: October 15, 2023.
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Indian Government to Reevaluate Free-On-Board Value for Basmati Rice Export Licensing
In an initiative aimed at controlling domestic rice prices and ensuring steady supply for local consumers, the Indian Government has made noteworthy adjustments regarding the exports of Basmati rice.
From the 25th of August 2023, Basmati rice export contracts with a value of USD 1200 per metric ton (MT) and above are deemed fit for registration towards the issuance of the Registration-cum-Allocation Certificate (RCAC), as stated by a press release from the Ministry of Consumer Affairs, Food and Public Distribution.
These regulatory updates came about due to reports indicating misclassification and illicit exports of non-Basmati white broken rice.
The reports surfaced following the government’s ban on non-Basmati white rice exports that began on 20th July.
It was found that non-Basmati white rice was wrongly being exported under the HS code meant for Basmati rice.
With the recent harvest season for Basmati rice, there’s been a predictable drop in prices. Alarmed by this, the Rice Exporter Associations voiced their concerns about the harsh impact of the high Free on Board (FOB) value on Basmati rice exports. A consultative meeting was arranged between the Minister of Consumer Affairs, Food and Public Distribution, and Basmati rice exporters.
The meeting concluded with the government mulling over a review of the FOB price needed for issuing the RCAC by the Agricultural and Processed Food Products Export Development Authority (APEDA) for Basmati rice exports.
The existing set-up of USD 1200 per MT will stay operational while the government debates on the final verdict.
This advancement emphasizes the government’s endeavor to balance the facilitation of exports and the safeguarding of homegrown interests in the rice industry, especially concerning the high-value Basmati rice.
The outcome of this ongoing evaluation could drastically impact the future of Basmati rice exports from India.
