New Delhi: The government has reduced the floor price for basmati rice exports to USD 950 per tonne from USD 1,200 per tonne amid concerns that higher prices were hurting outward shipments.

In a communication to export promotion body APEDA, the Union Commerce Ministry has said “it has been decided to revise the price limit for registration of contract for export of basmati rice from USD 1,200 per tonne to USD 950 per tonne.” Agricultural and Processed Food Products Export Development Authority (APEDA) has been directed to register only those contracts having value of USD 950 per tonne and above.

The government on August 27 decided not to allow exports of basmati rice below USD 1,200 per tonne to restrict possible “illegal” shipment of white non-basmati rice in the garb of premium basmati rice.

Press Trust of India