Minimum export price restriction for Basmati rice abolished

14-Sep-2024 02:24 PM

New Delhi. In view of the possibility of better production and strong demand from exporters, the Central Government has abolished the restriction of minimum export price (MAP) of $ 950 per tonne for Basmati rice. With this,

it will not be necessary for the exporters of Basmati rice to give the distribution of MAP in the purchase of registration-cum-allocation certificate from APEDA.

In short, the rule which was applicable for the export of priced Basmati rice from August 2023 has become effective again.

In a circular issued by the Union Ministry of Commerce, a decision to this effect has been announced while addressing the Chairman of APEDA and he has been requested to take immediate necessary steps in this regard.

It is noteworthy that the Agricultural and Processed Food Products Export Development Authority (APEDA) is a body of the Union Ministry of Commerce which conducts the process of export of Basmati rice.

In fact, the export offer price of Pakistani Basmati rice is running very low, which has caused great difficulty to Indian exporters as they cannot enter into export contracts at a price less than $950 per tonne.

The demand of importing countries was likely to weaken because during the last few months they had imported huge quantities of Basmati rice from India, a large part of which is still there. Apart from this, a leading buyer-Iran has banned the import of rice till the end of October.

In the last week of August 2023, the government had fixed a minimum export price of $ 1200 per tonne for Basmati rice, which was reduced to $ 950 per tonne in October. Now it has been completely abolished.