With the latest curbs on the export of basmati rice, a day after a 20% duty was levied on parboiled rice, India has now placed restrictions on every variety of the grain that it ships overseas.
The government introduced a $1200 price floor on the export of Basmati rice to keep a check on non-basmati exports which are prohibited but were being exported in the garb of Basmati, the Ministry of Commerce and Industry said in a notification on Sunday.
“Contracts of Basmati rice below $1200 a tonne may be kept in abeyance and may be evaluated by a committee to be set up by the Chairman of APEDA,” said the government notification. The Agricultural and Processed Food Products Export Development Authority (APEDA) is responsible for the regulation of Basmati rice exports.
The minimum export rice would help authorities ensure that non-basmati rice is not exported as basmati rice, said the notification. The latest restrictions are likely to have an impact across the global market, with benchmark rice prices in Asia near the highest level in almost 15 years.
On August 25, the government had levied a 20% duty on the export of non-Basmati parboiled rice which accounted for 30% of rice shipments in 2021-2022
Overseas sales of non-Basmati white grain were halted last month, with the caveat that some shipments would be allowed if requested to meet the food security needs of other countries.
Last year, India banned overseas sales of the broken variety which also accounted for about 20% of shipments in 2021-22.
India ships out around 4 million metric tonnes of basmati rice to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States, it is reported. It saw record exports in FY22 and FY23 because of Indian rice still being cheaper than other varieties.