Govt slashes minimum export price of basmati by $250 per tonne

New Delhi: The Central government on Thursday reduced the floor price for basmati rice exports to $950 per tonne from $1,200 per tonne amid concerns that higher prices were hurting exports.

The government had raised the floor price for basmati exports to $1,200 in August to increase domestic availability as food inflation was surging at the time.

The export curbs on basmati had been extended on October 14 but this had triggered protests from farmers and traders at a time when assembly elections are being held in key states.

The concern was that the high floor price made Indian consignments uncompetitive compared to Pakistan which also exports basmati rice.

Food Minister Piyush Goyal, who held consultation with traders, assured industry representatives last month that the government would review the minimum export price (MEP).

Food Secretary Sanjeev Chopra on October 18 said the government was actively reviewing the MEP.

During April-August, India’s basmati exports had touched close to 2 million valued at Rs 2,200 crore which represented a 12 per cent increase in value terms over the same period of the previous year. However, exports had slowed due to the hike in the MEP.