India implements restrictions on basmati rice exports temporarily halts contracts below $1200 a ton

In the wake of a recently imposed 20% duty on parboiled rice, India has taken measures to curb the export of basmati rice. Contracts for basmati rice exports with a value below $1200 a ton have been temporarily halted, according to a notification issued by the Ministry of Commerce and Industry.

The intention behind this move is to curb the illicit export of non-basmati rice that is being illicitly exported under the guise of basmati rice. The Ministry emphasized that this measure is aimed at preventing the unauthorized export of non-basmati rice while maintaining the integrity of basmati exports.

The government notification outlined that a contract for basmati rice priced below $1200 a ton will be put on hold and subject to evaluation by a committee to be established by the Chairman of the Agricultural and Processed Food Products Export Development Authority (APEDA). APEDA plays a key role in regulating the export of basmati rice.

The introduction of the Minimum Export Price (MEP) is seen as a means to ensure that non-basmati rice is not misrepresented as basmati rice in the export market.

India is a significant exporter of basmati rice, shipping around 4 million metric tons to countries like Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates, and the United States.

This latest measure follows the recent imposition of a 20% duty on parboiled rice exports, aimed at stabilizing local stocks and managing domestic prices. Additionally, last month, the government prohibited the export of non-basmati white rice to bolster domestic supply and control retail prices in anticipation of the festive season. Broken rice exports had also been banned in September of the previous year.

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