The Government of India has decided to remove the floor price on its exports to enhance the export of India’s premier basmati rice. This decision follows extensive trade concerns and a stable domestic rice supply.
The Agricultural and Processed Food Products Export Development Authority (APEDA) will monitor export contracts to ensure transparent pricing and prevent any unrealistic valuations of basmati rice.
Initially, a floor price of $1,200 per metric ton (MT) was imposed in August 2023 to address rising domestic rice prices and prevent the misclassification of non-basmati rice as basmati during exports, due to an export ban on non-basmati white rice. After consultations with trade bodies, the government had reduced the floor price to $950 per MT in October 2023.