The Indian government has lifted the floor price on Basmati rice exports, aiming to enhance the global trade of its premium rice variety. The decision is expected to bolster India’s position in international markets, addressing concerns raised by exporters and industry stakeholders.
Earlier, in August 2023, authorities had set a minimum export price of $1,200 per metric ton (MT) to curb potential misuse of export channels amid domestic price surges. This measure sought to prevent the misclassification of non-basmati rice as Basmati and safeguard the country’s rice supplies.
The high price threshold, however, sparked concerns from exporters, as it constrained legitimate Basmati trade. By October 2023, the government had responded by reducing the threshold to $950 per MT.
The decision to entirely remove the price floor signals a more dynamic, market-responsive policy shift. To ensure the integrity of this premium GI-tagged rice, APEDA will rigorously oversee export contracts, preventing undervaluation and protecting India’s global reputation in the rice trade.
This removal brings significant potential for India’s Basmati rice exports, positioning them more competitively on the world stage. Farmers and exporters stand to benefit as Indian Basmati finds greater opportunities abroad, with consumers gaining broader access to this sought-after rice variety.
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