Export Boost
Govt scraps minimum export price on basmati rice
This story was originally published at 22:23 IST on 13 September 2024
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MUMBAI – The Centre has scrapped the minimum export price on basmati rice, the commerce ministry said in a notification today. It has urged the Agricultural and Processed Food Products Export Development Authority to implement the order immediately, according to the notification. Until today, basmati rice attracted a minimum export price of $950 per tn.
Earlier in the day, Informist had exclusively reported quoting an industry official that the government is likely to scrap the minimum export price on basmati rice and a notification in this regard is likely within the next two days. The move will likely be taken in the interests of farmers amid the upcoming elections in Haryana, Devendra Vora, wholesale broker at Mumbai's Vashi mandi, said.
However, APEDA will closely monitor the export contracts for any unrealistic prices, according to the notification.
In 2023-24 (Jul-Jun), India produced 8 mln tn of basmati rice, up 23% from the previous year, according to media reports. Of the 8 mln tn, 5.25 mln tn was exported and 500,000 tn was consumed domestically. The remaining 2.25 mln tn of basmati rice was carried over, reports showed.
Scrapping of the minimum export price will give a boost to exports and lead to a fall in domestic stocks. This, in turn, will push up prices in the domestic market, which fell substantially on month. Basmati rice prices are currently at 7,000-7,300 rupees per 100 kg in Vashi mandi, down 1,000 rupees from August levels. End
Reported by Taniva Singha Roy
Edited by Ashish Shirke
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