On Thursday, the Central government decided to lower the minimum export price for basmati rice from $1,200 per tonne to $950 per tonne due to worries that elevated prices were negatively impacting export figures.
In August, the government increased the minimum export price for basmati rice to $1,200 in an effort to enhance domestic availability, given the surge in food inflation during that period.
Government Reduces Basmati Rice Export Price!
The export curbs on basmati had been extended on October 14 but this had triggered protests from farmers and traders at a time when assembly elections are being held in key states.
The concern was that the high floor price made Indian consignments uncompetitive compared to Pakistan which also exports basmati rice.
Food Minister Piyush Goyal, who held consultation with traders, assured industry representatives last month that the government would review the minimum export price (MEP).
Food Secretary Sanjeev Chopra on October 18 said the government was actively reviewing the MEP.
During April-August, India’s basmati exports had touched close to 2 million valued at INR 2,200 crore which represented a 12 per cent increase in value terms over the same period of the previous year. However, exports had slowed due to the hike in the MEP.