After imposing a ban on non-basmati white rice exports in June to stabilize domestic prices, India set a floor price, or minimum export price (MEP), of $1,200 a ton for overseas sales of basmati in August. However, as the floor price hampered exports of the premium variety and saddled farmers with large stocks of new-season rice, the government last month cut the floor price for basmati exports to $950 per ton.
n a communication to export promotion body APEDA, the Union Commerce Ministry has said "it has been decided to revise the price limit for registration of contract for export of basmati rice from USD 1,200 per tonne to USD 950 per tonne." The government on August 27 decided not to allow exports of basmati rice below USD 1,200 per tonne to restrict possible "illegal" shipment of white non-basmati rice in the garb of premium basmati rice.
Non-basmati white rice constitutes about 25 per cent of total rice exported from the country. India accounts for 40 per cent of global rice exports, but in the last few months, the country has prioritised domestic demand over global demands.
Non-basmati white rice constitutes about 25 per cent of total rice exported from the country. India accounts for 40 per cent of global rice exports, but in the last few months, the country has prioritised domestic demand over global demands.
The South Asian nation set the floor price in August to prevent some traders from smuggling non-basmati white rice, which has been banned for exports, by declaring them as the more expensive basmati.