Government Removes Floor Price on Basmati Rice
To Boost the export of Basmati floor Price, a premier GI variety rice of India, the government has decided to remove the floor price on the export of basmati rice.
 |
| Government Removes Floor Price on Basmati Rice, floor Price |
In response to ongoing trade concerns and adequate domestic availability of rice, the Government of India has now decided to completely remove the floor price on Basmati Rice exports.
The Agricultural and Processed Food Products Export Development Authority (APEDA) will closely monitor export contracts to prevent any non-realistic pricing of basmati rice and ensure transparency in export practices.
The background, a floor price
As a background, a floor price of $1,200 per metric ton (MT) was introduced in August 2023 as a temporary measure in response to rising domestic rice prices in the wake of tight domestic supply situation of rice and to curb any possible misclassification of non-basmati rice as basmati rice during exports, given the export prohibition on Non-Basmati White rice.
Following representations from trade bodies and stakeholders, the government rationalized the floor price to $950 per MT in October 2023.
When I was UN Mission in Congo (Africa)
My Monitors:-
The Indian government recently announced the removal of the minimum export price (MEP) on basmati rice, a move aimed at boosting exports and stabilizing the market.
The MEP, set at $1,200 per metric ton, was imposed in August 2023 as a temporary measure to curb the rising cost of rice domestically and prevent potential hoarding or speculative practices in international markets.
The floor price was intended to ensure that only high-quality basmati rice was exported while ensuring adequate supplies remained in the domestic market.
However, the imposition of the MEP had several unintended consequences. Exporters reported a significant drop in international demand due to the high pricing, particularly from key markets such as the Middle East, Iran, and Europe.
India's agricultural exports
Basmati rice, known for its distinctive aroma and long grains, holds a significant share of India's agricultural exports. The decline in demand affected the income of farmers and exporters alike, leading to calls for a reconsideration of the policy.
The removal of the MEP comes as a relief to the rice industry, which is highly dependent on exports. It is expected to increase India's competitiveness in the global market and help regain the market share lost to competitors like Pakistan. Additionally, the decision is likely to stabilize prices for farmers who are concerned about reduced demand and falling prices.
The government is expected to monitor the rice market closely to prevent any spikes in domestic prices while ensuring a steady flow of exports. This policy shift reflects the government's balancing act between protecting the domestic market and promoting agricultural exports to sustain farmer incomes.
***
Tags:-
floor price on basmati rice
price of basmati rice at Costco
how much does basmati rice cost
basmati rice price per pound
basmati rice cost
market basket basmati rice
basmati rice price in bangladesh 2023
basmati rice price costco
price of basmati rice in usa
how much does basmati rice expand
basmati rice flour price
basmati rice at lowest price
how much is 1kg of basmati rice
basmati rice 20kg price
floor rice
basmati rice price usa
basmati rice price in america
basmati rice price in us
how much does a bag of jasmine rice cost
kirkland basmati rice price
market price of rice
best price on rice
basmati rice publix
rice market basket
walmart basmati rice
walmart royal basmati rice
basmati rice zebra
basmati rice zafarani
basmati rice 3 cups
5 lb bag of rice price
Post a Comment
Thanks for messaging us. If you have any doubts. Please let me know.