India To Review Floor Price For Basmati Rice Exports

New Delhi, Oct 16 (KNN) The central government said on Sunday that it is actively reviewing the floor price it has set for basmati rice exports even as it continues to curb overseas shipments, reported Reuters. 

The decision comes after New Delhi, the world’s biggest rice exporter, said on Saturday said it will maintain a USD 1,200 per ton minimum export price (MEP) on basmati rice shipments, which was first imposed in August to calm local prices.

Exporters have raised concerns as they are worried about a sharp drop in shipments due to the government decision, reported Reuters. 

The government's Sunday statement said there was a general decline in prices as the new rice crop has started arriving and the minister for consumer affairs had met exporters who told the government the floor price was adversely affecting exports.

Following the meeting, a review of the floor price “is under active consideration of the government,” the statement said.

The MEP aims to help authorities ensure that non-basmati rice is not exported as basmati rice.

India in July banned exports of non-basmati white rice and later imposed a 20% duty on exports of parboiled rice. 

(KNN Bureau)