9-Government Plans to Decrease Minimum

1. Government Plans to Decrease Minimum Export Price of Basmati Rice to Government Plans to Decrease Minimum Export Price of Basmati Rice to $950/tonne Soon $950/tonne Soon As per Geographical Indication report, basmati rice is grown in 70 odd districts namely Punjab, Haryana, western Uttar Pradesh, Jammu & Kashmir and Uttarakhand. At the global level, where Pakistan holds the grab on 20% export of basmati rice, India has contributed around 75-80% of basmati rice export at the global level. In addition to this, the demand for redolent long grain rice has increased at the global market. A senior official stated that the minimum export price (MEP) of Basmati rice will be reduced from $1,200 tonne to $950/tonne by the government on August 25. Exporters will be allowed to register for the shipments holding the value of more than $1,200 after a regulation of formal notification by the Agricultural and Processed Food Products Development Authority (APEDA). Basmati Basmati- -Rice Export Policy Rice Export Policy In a meeting held on Monday, the ministry of Commerce and industry assured to communicate the implementation of price deduction on Basmati rice to the exporters. The Karnal based rice exporter and former president of All Indian Rice Exporters, Vijay Setia stated, “Farmer incomes and the export awareness will boost after the implementation of exporting Basmati rice above $950/tonne.” To stop the illicit exportation of white basmati rice in the form of premium basmati rice, the government implemented the temporary changes in MEP, in August, of basmati rice that is $1200/tonne, till 15 October.

2. Later, as the Government decided to extend the date of recent changes in MEP, the exporters have stopped allowing the advance possession of basmati rice as they fear that the exports there may be a decrease of export demand due to high MEP. Since extra possession and backlog of basmati rice paddy can affect the business feasibility and capacity, president of AIREA and rice exporter of Apex body, Nathi Ram Gupta advised that the exporters should be extra cautious when it comes to having back up of basmati rice importer. Since July 2023, multiple reports have been found by the commerce ministry which shows the scramble of illicit export of white rice which is sold as basmati rice. MEP Of Basmati Rice From India MEP Of Basmati Rice From India In the last five years, the average price of basmati rice export stands at $950/tonne, as per AIREA report. In comparison to the April-August period of last year, India reported an 12.6% increase in terms of the value of basmati rice which now stands at 2.1 million tonnes that is equivalent to $2.22 billion. With an usual price of $1050/tonne, India exported 4.56 million tonnes of basmati rice in 2022-23. APEDA, in collaboration with the agriculture ministry, formed a committee to investigate large variations in the contract price of basmati exported in August, with the lowest price being $359/tonne compared to the average export price of $1,214/tonne. The report advocated for significantly lowering the MEP so that exports are not hampered. If you are a Basmati rice importer wishing to buy basmati rice in bulk or a basmati rice exporter willing to export basmati bulk rice, then Tradologie.com is the right platform for you. Tradologie.com is a Software as a Service platform that facilitates bulk agro-commodities trade across the globe including all varieties of rice. Through tradologie.com’s interface, buyers can avail the best qualities of agro- commodities such as rice, wheat, pulses, spices and many other commodities at negotiable rates. Sellers on the platform get better access to new global buyers, increasing their overall business orders and profits, as there are no middlemen involved in the trade here. The transaction oriented platform has 600,000+ verified buyers and about 70,000+ registered sellers of agro-commodities from over 150 countries. To register as a buyer, click here. To register as a seller, click here. To stay updated with the latest happenings in the agro-trade industry, follow Tradologie.com across all social media channels.