Simply put, the government has fixed the minimum export price of basmati rice at $1200 per tonne. If an exporter deals at less than that price, he will not be issued registration and allotment certificate.
A good amount of basmati rice has been exported from the country in recent months, while it is expected to continue in the future as well.
Non-basmati white rice is also banned
Last month, the government banned exports of non-basmati white rice to boost domestic supply and control retail prices. In September last year, the government banned the export of broken rice.
20 percent export duty on parboiled rice exports
At the same time, the Indian government on Friday imposed 20 percent export duty on exports of parboiled rice. The government has taken this step to maintain adequate stocks at the local level and keep prices under control. The notification issued by the finance ministry said that the export duty imposed on August 25 will remain in force till October 16, 2023.
Which rice will be exempted?
The Finance Ministry has informed that this export duty will give relief to those ripened rice, which have not received LEO (Late Export Order) and reached the ports. Along with this, letters of credit before 25 August 2023 have also been received.
How much rice does India export?
India exported 15.54 lakh tonnes of non-basmati rice between April-June of the current financial year, as against only 11.55 lakh tonnes last year. The reason for banning non-basmati white rice was the high cost of the foodstuff.
Retail inflation highest in 15 months
Retail inflation hit a 15-month high of 7.44 percent in July, up from 4.87 percent in June, on the back of a rise in food prices.
Also Read:-
IMF to ‘encourage’ India to lift export ban on non-basmati white rice
Foreigners also fond of black sweet rice, exports more than tripled in three years