Govt puts price curbs on export of basmati amid high inflation

The Union government has temporarily halted export of any basmati rice consignment being sold overseas for less than $1,200 a tonne, while shipments contracted above that price threshold will continue to be allowed, according to an order issued on Saturday

- Zia Haq

The move is likely to slow down the export of one of India's most sought-after, high-value export items. The country shipped basmati rice worth over $4.79 billion in 2022-2023, mostly to the Middle-East and the US.

Battling persistent high food prices, the world's largest exporter of the grain banned the export of all grades of non-basmati white rice on July 20, sending global prices to a 12-year high, as measured by the Food and Agriculture Organisation's (FAO) rice price index. The fresh curbs on basmati export are likely to accelerate global prices further.

A commerce ministry order reviewed by HT said the new regulations on basmati export comes after "credible information" that non-basmati rice was being shipped out using export provisions that apply to the aromatic basmati variety.