New Delhi [India], October 15 : In a move to address concerns related to domestic rice prices and ensure an adequate supply for local consumers, the Indian Government has taken significant steps regarding Basmati rice exports.
Effective from 25th August 2023, contracts for the export of Basmati rice with a value of USD 1200 per metric ton (MT) and higher are eligible for registration for the issuance of the Registration-cum-Allocation Certificate (RCAC), read the Ministry of Consumer Affairs, Food and Public Distribution press release.
This regulatory measure became necessary in response to credible field reports indicating misclassification and illegal exports of non-Basmati white rice.
These reports emerged after the government's prohibition on the export of non-Basmati white rice took effect on 20 July, read the press release.
It was discovered that non-Basmati white rice was being improperly exported under the HS code designated for Basmati rice.
With the arrival of the new crop of Basmati rice, the market has witnessed a typical decline in prices. In response to concerns raised by the Rice Exporter Associations regarding the adverse impact of the high Free on Board (FOB) value on Basmati rice exports, a consultative meeting took place between the Minister of Consumer Affairs, Food and Public Distribution, and Basmati rice exporters, read the press release.
This meeting led to active considerations by the government for a review of the FOB price required for the issuance of the Registration-cum-Allocation Certificate (RCAC) by the Agricultural and Processed Food Products Export Development Authority (APEDA) for Basmati rice exports.
While the government deliberates on a final decision, the existing arrangement of USD 1200 per MT will remain in effect, read the press release.
This development underscores the government's commitment to strike a balance between facilitating exports and protecting domestic interests in the realm of rice trade, particularly when it comes to the high-value Basmati rice.
The outcome of the ongoing review could have a significant impact on the future of Basmati rice exports from India.
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