Minimum export price of non-basmati rice likely to be fixed at $500 per tonne

09-Jul-2024 11:05 AM

New Delhi. Official sources say that an important meeting of the committee of ministers is going to be held during the current week under the chairmanship of the Union Home and Cooperation Minister, in which a proposal to fix a minimum export price of $500 per tonne for shipment of non-basmati rice can be approved.

Although a proposal to reduce the minimum export price (MAP) of Basmati rice from the current level of $950 per tonne is also under consideration, but the decision on this can be postponed for the time being. 

According to informed sources, last week the Commerce Ministry had called a meeting of rice exporters and tried to listen to their problems and concerns and accordingly finalized some proposals which could be considered in the meeting of the panel of ministers.

Although it has not been made clear how many proposals have been finalized or what changes are proposed to be made, but it seems that some important decision can be taken regarding the export of non-basmati rice. 

Rice exporters had suggested in a meeting with Commerce Ministry officials that the 20 percent export duty currently applicable on non-Basmati Sela rice should be removed and in its place a duty of $90 per tonne should be imposed.

It is understood that the government has decided to impose an export duty of $100 per tonne on rice shipments based on the minimum export price (MAP) of $500 per tonne.

According to experts, this new fixed export duty will be considered valid for Sela rice as well as white (raw) rice. It is worth noting that commercial export of white rice is banned, but its shipment is allowed at the government level.

White rice is exported through National Cooperative Exports Limited (NCEL). Although the industry had demanded to reduce the minimum export price of Basmati rice from $950 per tonne to $800-850 per tonne, the decision on this is likely to be postponed further.