In a significant move, the Government of India has decided to remove the minimum export price (MEP) for Basmati rice, a measure aimed at enhancing the competitiveness of this prized variety in the global market. This decision is expected to boost Basmati rice exports and provide a much-needed impetus to farmers and exporters.
Basmati rice, a premium Geographical Indication (GI) product of India, has seen steady growth in exports over the years. With this step, the government aims to further improve its export performance. India currently has sufficient domestic rice supplies, and trade-related concerns have been addressed. The move is set to help accelerate exports, benefiting both Indian farmers and exporters. Reports suggest that Basmati rice exports have already seen a 15% rise this year, with increasing demand from countries like Saudi Arabia and the United States.
The Agricultural and Processed Food Products Export Development Authority (APEDA) has been tasked with closely overseeing export contracts. APEDA will ensure transparency and fairness in pricing, preventing any irregularities in export transactions. The authority will also continue to maintain transparency in export practices, ensuring that India Basmati rice remains competitive in the global market.
Back in August 2023, the government had imposed a temporary minimum export price of $1,200 per metric ton due to domestic supply shortages and rising rice prices. This measure was intended to prevent non-Basmati rice from being misclassified as Basmati for export purposes. However, following requests from trade bodies, the MEP was rationalized to $950 per metric ton in October 2023.
With the MEP now fully lifted, the government expects a fresh surge in Basmati rice exports, positioning India to meet growing international demand and enabling further growth in the sector.
.jpg "Government new initiative to promote regenerative farming in India")
