India Sets Conditional Restrictions On Basmati Rice Export

New Delhi, Aug 28 (KNN) The central government has announced a minimum export price (MEP) of USD 1,200 a tonne on basmati rice shipments. 

It aims to rein in domestic prices of the kitchen staple ahead of elections in key states.

The government on Friday had imposed a 20% duty on parboiled rice exports, effective immediately.

With this India has now curbed exports of all non-basmati varieties, which account for about 80% of its total rice shipments. 

The country accounts for about 40% of global rice trade.

Mint had reported on 22 August that the government was mulling imposing a minimum export price (MEP) on basmati shipments to stop aggressive exports by falsely labelling shipments as those of basmati rice.

“There are credible field reports regarding misclassification and illegal export of non- basmati white rice, and it has been brought to the notice of government that the non-basmati white rice, export of which has been prohibited with effect from 20th July 2023, was being exported under the HS codes of parboiled rice and basmati rice," the commerce ministry said in a letter to the Agricultural and Processed Food Products Export Development Authority (APEDA).

“In view of the apprehension that non-basmati white rice, the export of which has been prohibited, is being exported in the garb of basmati rice, it has been decided that APEDA should introduce additional safeguards for registration of contracts for export of basmati rice."

“Contracts for Basmati exports with the value of USD 1,200 per MT only and above should be registered for issue of registration-cum-allocation certificate," the letter added.

A committee will be set up by APEDA to enforce the move.  (KNN Bureau)