Government cuts floor price of Basmati Rice Exports

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On October 26, the Central government announced a reduction in the minimum export price for basmati rice from $1,200 per tonne to $950 per tonne.

The decision came in response to concerns that the higher pricing had been negatively impacting the volume of basmati rice exports.

This adjustment was communicated  by the Union Commerce Ministry to the export promotion body APEDA which also issues APEDA Registration Certificate benefitting rice exporters.

Let’s understand the latest update on the floor price of basmati rice exports in detail along with the benefits of APEDA Registration for rice exporters.

Understand Latest Happenings in the Rice Market

  • Rice inflation has consistently remained at a high level, with an average of 12 percent over the past four months.
  • The government anticipates a significant price drop in the next month as new harvests enter the market.
  • On August 25, the government took measures to boost domestic rice supply and control prices by stipulating that basmati rice contracts worth $1,200 per tonne or more were the only ones eligible for export registration until October 15.
  • This export restriction was extended indefinitely by the government.
  • The food ministry recently mentioned that the government is contemplating industry requests to lower the minimum export price.
  • The commerce ministry also explained that they had credible field reports of misclassification and illegal export of non-basmati white rice, which prompted the ban on shipments from July 20, 2023.
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Government’s MEP Policy Review and Its Impact on Rice and Wheat Exports in India

The Food Minister, Piyush Goyal, assured industry representatives that the government would reconsider the MEP(Minimum Export Prices), which is a price limit for exports, to control the export of rice and wheat.

Therefore, authorities are now actively reviewing the MEP as new basmati rice varieties enter the market.

India is a major exporter of premium aromatic rice, sending over 4 million tonnes annually, primarily to West Asian countries. Therefore, recently the Government brought down the floor price of Basmati Rice Exports.

APEDA Registration Benefits for Rice Exporters

  • Access to Global Markets: APEDA registration helps rice exporters sell their products in other countries, making it easier to do business worldwide.
  • Quality Assurance: It ensures that the rice you export meets high-quality standards, which is important for international buyers.
  • Financial Support: You can get financial help and subsidies, which means the government can provide money to support your export efforts.
  • Market Information: APEDA gives you useful information about markets, so you know where and how to sell your rice.
  • Networking and Learning: You can meet and learn from others in the industry, which can help your business grow and improve.

In short, the exporters now must get APEDA Registration and benefit from the latest news of reduction in MEP.

DGFT allows export of Non-Basmati White Rice

Moreover, If you want any other guidance relating to Government cuts floor price of Basmati Rice Exports, please feel free to talk to our business advisors at 8881-069-069.

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