The Union government added protections to its export restriction on non-Basmati white rice. (by misclassifying it as Basmati) on August 28 by prohibiting the export of Basmati priced at less than $1,200 per metric tonne (MT).
Non-Basmati white rice exports outlawed on July 20, 2023, citing rising local rice prices.
The Union Commerce Ministry stated that it had directed the Agricultural & Processed Food Products Export Development Authority (APEDA). The agency in charge of regulating Basmati rice exports, that contracts for Basmati exports worth $1,200 per metric tonne or more should registered for the issuance of a Registration-cum-Allocation Certificate (RCAC).
It has also requested that contracts worth less than $1,200 per MT put on hold and assessed by a committee appointed by the Chairman of APEDA. To investigate price variations and the usage of this channel for the export of non-Basmati white rice. “It has noted that there has a large variation in the contract price of Basmati being exported. The lowest contract price being $359 per MT in the backdrop of an average export price of $ 1214 per MT during August,” the Centre stated.
The Ministry has ordered the committee to present its findings within one month. After which a decision on lower-priced Basmati exports can made. The Ministry has also asked APEDA to organize talks with traders. To raise awareness of the issue and collaborate with them. To discourage the usage of the window for the export of non-Basmati white rice.
The Centre had prohibited the export of cracked rice in September 2022. The Centre levied a 20% export levy on par-boiled non-basmati rice in August 2023. According to studies, such restrictions have reduced the supply of foodgrains in several African countries.
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