New Delhi: In a decisive move to enhance the export of basmati rice, the Government of India has announced the removal of the floor price on this premier GI (Geographical Indication) variety. This change is set to bolster the global trade of basmati rice, which is highly valued for its unique aroma and quality.
The decision to eliminate the floor price comes in response to ongoing trade concerns and a satisfactory domestic supply of rice. The floor price, initially set at $1,200 per metric ton (MT) in August 2023, was implemented as a temporary measure to address rising domestic rice prices and prevent misclassification of non-basmati rice as basmati rice during exports. The floor price was later adjusted to $950 per MT in October 2023 following representations from trade bodies and stakeholders.
The Agricultural and Processed Food Products Export Development Authority (APEDA) will now oversee export contracts to ensure transparency and prevent unrealistic pricing practices. APEDA’s role will be crucial in maintaining the integrity of basmati rice exports and supporting the interests of both domestic producers and international buyers.
This policy shift aims to facilitate a more competitive export environment for basmati rice and support Indian farmers and exporters by removing constraints on international trade. By lifting the floor price, the government seeks to capitalize on the global demand for basmati rice and strengthen India’s position in the international rice market.
