The Indian government has enforced a minimum price cap of US $1,200 per ton on export of Basmati rice, targeting to check the price of the essential in the Indian market.
According to Indian media, the Ministry of Commerce on Sunday directed the Agricultural and Processed Food Products Export Development Authority (APEDA), trade promotion body of India, not to register contracts below US $1,200.
“Seeking to control retail prices of rice, the central government has been taking several steps to boost domestic supply,” The Times of India reported.
The Indian government is said to have imposed the new rule citing an increase in smuggling of non-basmati rice in the name of the same quality of rice. “It has been brought to the notice of the government that the non-basmati white rice, the export of which has been prohibited, is being exported in the garb of rice,” reads the news report.
The Indian government has also formed a committee under APEDA chairman for assessing the variation in prices and use of this route for export of non-basmati white rice.
In September last year, Indian authorities banned exports of broken rice. On July 20, it imposed restrictions on non-basmati white rice. Since Saturday, India has started imposing 20 percent export duty on par-boiled non-basmati rice.
India exported 4.56 million tons of same quality of rice worth $4.8 billion last year. Likewise, the export of non-basmati rice was 17.79 million tons valued at $6.36 billion, according to the Indian media.
The Indian media say the restrictions have come online mainly due to the low harvest of crops attributed to deficient rainfall in many parts of the country. “Karnataka alone received 75 percent below normal rain this year.”
India’s restriction on the export of rice has taken a toll on the prices of rice in the international market. The price of essentials has skyrocketed in the international market mainly in the past year. The Food and Agriculture Organization reports that the price index of rice reached 129.7 points in July 2023, the highest mark since September 2011.
