Basmati put under minimum export price
NEW DELHI : The government set a minimum export price (MEP) of $1,200 a tonne on basmati rice shipments in a move aimed at reining in domestic prices ahead of elections in key states. The move came a day after it imposed a 20% duty on non-basmati parboiled rice exports, effective immediately. The measures are aimed at ensuring rice prices remain under control after paddy production came under a cloud because of excess rainfall in Punjab and Haryana, and deficient rains in the eastern region.
As things stand, India has now curbed exports of all non-basmati varieties, which account for about 80% of its total rice shipments. The country makes up 40% of the global rice trade. Mint had first reported on 23 August that the government was mulling imposing a minimum export price (MEP) on non-basmati shipments to stop exporters falsely labelling shipments as those of basmati rice, and weighing a 20% export duty on non-basmati parboiled rice.
As per a finance ministry notification issued late Friday, the export duty on parboiled rice will be applicable with immediate effect and remain valid till 15 October. The objective is to slow down or delay shipments amid a 13.84% on-year decline in Rabi rice production and poor 2023-24 Kharif crop prospects. The agriculture ministry in its third crop estimate said rice production during the Rabi season of 2022-23 was 15.9 million tonnes against 18.5 mt in the previous season.
By 15 October, the government will have a fair idea about expected Kharif rice production, according to trade sources. Farmers transplanted paddy or rice till 25 August in the current Kharif season across 38.4 million hectares, 4.4% more than the same period last year. Monsoon till date remains deficient by 7% with East
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