Government reduces minimum export price of basmati by $250 per tonne
Published on: October 27, 2023.
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The Central government of India has recently announced a reduction in the floor price for basmati rice exports. The floor price has been decreased from $1,200 per tonne to $950 per tonne. This decision has been made in response to concerns that the higher prices were negatively impacting the export of basmati rice.
In August, the government had raised the floor price for basmati rice exports to increase domestic availability and address food inflation. However, this decision faced backlash as it made Indian exports less competitive compared to Pakistan, a leading exporter of basmati rice.
The extension of export curbs on basmati rice on October 14 sparked protests from farmers and traders, especially during ongoing assembly elections in key states. As a result, the Food Minister, Piyush Goyal, held consultations with traders to discuss the minimum export price (MEP). Assuring industry representatives, Goyal stated that the government would review the MEP.
Food Secretary Sanjeev Chopra confirmed on October 18 that the government is actively reviewing the MEP. The reduction in the floor price for basmati rice exports aims to boost the competitiveness of Indian consignments in the global market.
It is worth noting that from April to August, India experienced a 12% increase in the value of basmati rice exports compared to the previous year. However, this growth slowed due to the higher floor price. By reducing the floor price, the government hopes to rejuvenate basmati rice exports and support the industry.
For more information on rice exporters and suppliers, please visit: [rice exporters](https://www.hasrice.com) and [pakistan rice exporters](https://www.pakistanrice.com).
Source: [The Hans India](https://www.thehansindia.com)
