IANS | 27 Oct, 2023
The Central government on Thursday reduced the floor price for
basmati rice exports to $950 per tonne from $1,200 per tonne amid
concerns that higher prices were hurting exports.
The government
had raised the floor price for basmati exports to $1,200 in August to
increase domestic availability as food inflation was surging at the
time.
The export curbs on basmati had been extended on October 14
but this had triggered protests from farmers and traders at a time when
assembly elections are being held in key states.
The concern was
that the high floor price made Indian consignments uncompetitive
compared to Pakistan which also exports basmati rice.
Food
Minister Piyush Goyal, who held consultation with traders, assured
industry representatives last month that the government would review the
minimum export price (MEP).
Food Secretary Sanjeev Chopra on October 18 said the government was actively reviewing the MEP.
During
April-August, India’s basmati exports had touched close to 2 million
valued at Rs 2,200 crore which represented a 12 per cent increase in
value terms over the same period of the previous year. However, exports
had slowed due to the hike in the MEP.
