 "Basmati Rice")
Around half of India’s annual basmati rice exports could be impacted due to the recent government decision to allow exports of only basmati priced above $1,200 per tonne in the international markets, leading industry players said.
India exported around 4.6 million tonnes of basmati rice in FY23. Exporters said the average free on board (FOB) price of basmati rice is around $1,050 per tonne and exports generally take place in three forms: raw or brown, steam, and parboiled.
Over 50 per cent of the exports comprise parboiled basmati rice that fall within the $1,200 FOB price limit.
“Implementing $1,200 price cap will have a major impact on basmati rice exports,” Atul Garg, managing director of GRM Overseas, said. The long-term effects of the order on the basmati rice industry will depend on how exporters, domestic farmers, and the government respond to these changes, he added.
The Centre in a recent order has decided not to allow exports of basmati rice below $1,200 per tonne to restrict possible "illegal" shipment of white non-basmati rice in the garb of premium basmati rice.
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In a statement on Sunday, the commerce ministry said it has directed trade promotion body APEDA not to register contracts below $1,200 per tonne.
Existing contracts below $1,200 per tonne have been kept in abeyance.
The statement said a committee under the chairman of APEDA will be set up to evaluate future courses of action.
