Govt decides not to allow basmati rice exports below $1,200/tonne

New Delhi: The government has decided not to allow exports of basmati rice below $1,200 per tonne to restrict possible “illegal” shipment of white non-basmati rice in the garb of premium basmati rice.

In a statement on Sunday, the commerce ministry said it has directed trade promotion body APEDA not to register contracts below $1,200 per tonne.

Existing contracts below $1,200 per tonne have been kept in abeyance.

A committee under the chairman of APEDA will be set up to evaluate future course of action.

Seeking to control retail prices of rice, the central government has been taking several steps to boost domestic supply.In September last year, it banned exports of broken rice, while last month it imposed restrictions on non-basmati white rice. Last week, a 20 per cent export duty was slapped on par-boiled non-basmati rice.

With these curbs, India has now imposed restrictions on all varieties of non-basmati rice.

India’s total exports of basmati rice stood at $4.8 billion in 2022-23 in terms of price, while in volume terms it was at 45.6 lakh tonne.

Exports of non-basmati stood at $6.36 billion in the last fiscal. In volume terms, it was 177.9 lakh tonne.

India’s rice production is estimated to have risen to 135.54 million tonne in the 2022-23 crop year (July-June) from 129.47 million tonne in the previous year, according to the agriculture ministry data.

The ministry said that to check domestic prices and to ensure domestic food security, the government has been taking measures to restrict export of rice from India.

The export of non-basmati white rice was prohibited on July 20.