The government has decided to lift the minimum export price (MEP) of USD 490 per tonne on non-basmati white rice exports in order to promote the shipment of the commodity. This decision comes after the government had previously imposed a ban on exports of non-basmati rice and later imposed a floor price. The move is aimed at boosting outbound shipments and enhancing farmers’ income.
The ban on exports of non-basmati rice was put in place on July 20, 2023. However, with ample stock of rice in government godowns and retail prices under control, the lifting of MEP is a positive step for the rice industry. Additionally, the government had previously removed the minimum export price for basmati rice to facilitate exports.
Despite the ban on exports, the government had been allowing shipments to friendly nations such as Maldives, Mauritius, the UAE, and African countries. Non-basmati white rice holds significant demand in both the Indian and global markets, especially in countries with a large Indian diaspora.
The ongoing conflict between Russia and Ukraine has caused disruptions in the foodgrain supply chain, impacting the rice industry as well. Despite these challenges, the decision to remove the MEP on non-basmati white rice exports is expected to boost the overall export volume and benefit farmers in the long run.
