The Union government has reduced the floor price for basmati rice exports to $950 per tonne from $1,200 per tonne amid concerns that higher prices were hurting outward shipments. 

In a communication to export promotion body APEDA, the Union Commerce Ministry has said: “It has been decided to revise the price limit for registration of contract for export of basmati rice from $1,200 per tonne to $950 per tonne.” The government on August 27 had decided not to allow exports of basmati rice $1,200 per tonne to restrict possible “illegal” shipment of white non-basmati rice in the garb of premium basmati rice. 

Recently, the Food Ministry had said that the government was considering the industry’s demand to reduce the floor price.

India’s total exports of basmati rice stood at $4.8 billion in 2022-23 in terms of price, while in volume terms it was at 45.6 lakh tonnes. 

Rice exporters’ associations have been demanding from the last two months to reduce this price, stating that India was losing its export market due to the tough price competition from neighbouring countries like Pakistan. 

They have been also arguing that India’s average export realisations in the last two to three financial years have been $800-900 per tonne.