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

New Delhi: The Union 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.

As per the Foreign Trade Policy, APEDA is mandated to register all contracts for export of basmati rice and then it issues RCAC for the export of basmati rice. APEDA should hold consultations with trade to sensitize them about the matter and work with them to discourage any use of this window for export of non-basmati white 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.