government reduces basmati export floor price to $950 per tonne
Published on: October 27, 2023.
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The Indian government has made the decision to lower the minimum price for basmati rice exports from $1,200 per tonne to $950 per tonne. This move comes as concerns have been raised that higher prices were negatively impacting the country’s rice exports.
The decision to revise the price limit was communicated to the Agricultural and Processed Food Products Export Development Authority (APEDA) by the Union Commerce Ministry. It was explained that the purpose of this revision is to ensure that the floor price is more competitive and aligned with market realities.
This adjustment in the minimum price for basmati rice exports follows a previous decision made by the government on August 27th, which stated that basmati rice should not be exported below $1,200 per tonne. This decision aimed to prevent any potential “illegal” shipment of white non-basmati rice disguised as premium basmati rice.
The government’s consideration of reducing the floor price came following a demand from the rice industry, which highlighted the challenges faced by exporters due to the higher minimum price.
By lowering the floor price for basmati rice exports, the government hopes to provide relief to exporters and promote the growth of the rice industry. This adjustment is expected to make Indian basmati rice more competitive in the global market, which will ultimately benefit the country’s agricultural sector.
Source: [https://www.latestly.com](https://www.latestly.com)
