Centre removes Floor Price on Basmati Rice

     Raipur September 14, 2024: In a significant step to boost export of basmati rice, a premier GI variety rice of India, the Government of India has decided to remove the floor price on export of basmati rice, official sources said today.

     In response to ongoing trade concerns and adequate domestic availability of rice, the Centre has now decided to completely remove the floor price on Basmati Rice exports.

     The Agricultural and Processed Food Products Export Development Authority (APEDA) will closely monitor export contracts to prevent any non-realistic pricing of basmati rice and ensure transparency in export practices, sources in the Ministry of Commerce & Industry said.

     As a background, a floor price of $1,200 per metric ton (MT) was introduced in August 2023 as a temporary measure in response to rising domestic rice prices in the wake of tight domestic supply situation of rice and to curb any possible misclassification of non-basmati rice as basmati rice during exports, in view of the export prohibition on Non-Basmati White rice.

     Following representations from trade bodies and stakeholders, the government had then rationalized the floor price to $950 per MT in October, 2023.