Centre places further restrictions on the export of Basmati rice

Photo used for illustration objective solely. By banning the export of Basmati rice valued at lower than $1,200 per metric tonne (MT), the Union authorities on August 28 ensured further safeguards for its export ban on non-Basmati white rice 

By banning the export of Basmati rice valued at lower than $1,200 per metric tonne (MT), the Union authorities on August 28 ensured further safeguards for its export ban on non-Basmati white rice (by misclassifying it as Basmati rice).

The export of non-Basmati white rice was prohibited on July 20, 2023, citing growing home costs of rice.

The Union Commerce Ministry stated it had directed the Agricultural & Processed Food Products Export Development Authority (APEDA), the company accountable for regulation of export of Basmati rice, that contracts for Basmati exports with the worth of $1,200 per metric tonne and above solely must be registered for challenge of Registration-cum-Allocation Certificate (RCAC).

It has additionally requested the APEDA that contracts with the worth of beneath $1,200 per MT could also be saved in abeyance and could also be evaluated by a committee to be arrange by the Chairman, APEDA, for understanding the variation in costs, and the use of this route for export of non-Basmati white rice. “It has been noted that there has been large variation in the contract price of Basmati being exported with lowest contract price being $359 per MT in backdrop of average export price of $ 1214 per MT during August,” the Centre stated.

The Ministry has requested the committee to submit its report inside of one month, and stated a call on cheaper price exports of Basmati may be taken primarily based on the report. The Ministry has additionally directed the APEDA to carry consultations with merchants to sensitise them about the matter, and work with them to discourage any use of the window for export of non-Basmati white rice.

In September 2022, the Centre had banned exports of damaged rice. In August 2023, the Centre imposed 20% export obligation on par-boiled non-basmati rice. There have been stories that such curbs have impacted the availability of foodgrains in lots of African nations.