The minimum export price of basmati rice has been reduced to $950 per tonne

New Delhi: The government has decided to reduce the minimum export price of basmati rice from $1200 to $950 per ton. This decision has been taken keeping in mind the concern that exports are being affected due to high prices.

In a letter written to Apeda, an export promotion organization, the Union Ministry of Commerce has said that it has been decided to reduce the price limit for registration of contract for basmati rice export which is $1200 per tonne to $950 per tonne.

On August 27, the government had decided not to allow the export of basmati rice at a price below 1200 dollars per ton. Earlier, another report said exporters argued that India's prices are high in the global basmati trade and it is difficult to stay competitive.

Rice is the main kharif crop. Planting operations for the current season have been completed. But the new crop of rice will start coming from January. However, the sources said that the government has reviewed the export prices keeping in mind the demands raised from various levels.

With the current year's monsoon being disproportionate in some areas, the government's eye is also currently on rice production.

India and Pakistan are major producers of Basmati. India's basmati rice is mainly exported to Yemen, America, Saudi Arabia, UAE etc.

The sadar report also said that exporters have stopped buying rice from farmers due to high minimum export price.