Basmati put under minimum export price

The government set a minimum export price (MEP) of $1,200 a tonne on basmati rice shipments in a move aimed at reining in domestic prices ahead of elections in key states. The move came a day after it imposed a 20% duty on non-basmati parboiled rice exports, effective immediately.

- Puja Das

The measures are aimed at ensuring rice prices remain under control after paddy production came under a cloud because of excess rainfall in Punjab and Haryana, and deficient rains in the eastern region.

As things stand, India has now curbed exports of all non-basmati varieties, which account for about 80% of its total rice shipments.

The country makes up 40% of the global rice trade.

Mint had first reported on 23 August that the government was mulling imposing a minimum export price (MEP) on non-basmati shipments to stop exporters falsely labelling shipments as those of basmati rice, and weighing a 20% export duty on non-basmati parboiled rice.