In a move to reinvigorate basmati rice exports, the Indian government has decided to reduce the floor price from $1,200 per tonne to $950 per tonne. The decision was made amid concerns that the higher floor price was adversely affecting exports of this premium variety of rice.
The commerce ministry conveyed this decision to the Agricultural and Processed Food Products Export Development Authority (APEDA), as reported by news agency PTI. The new floor price is expected to promote overseas shipments of basmati rice and address the challenges faced by exporters in recent months.
Initially, on August 27, the Indian government had banned basmati rice exports priced below $1,200 per tonne. This move was aimed at curbing potential “illegal” shipments of white non-basmati rice disguised as high-quality basmati rice. On October 15, the government extended this notification indefinitely.
However, just a day later, the commerce ministry released a statement indicating that a review of the Minimum Export Price (MEP) of $1,200 per tonne, which was implemented in August, was still actively under consideration. This statement came in response to reports that some exporters had halted the purchase
