New Delhi (Agency): In a move to restrict potential “illegal” exports of white non-basmati rice disguised as premium basmati rice, the Indian government announced on Sunday that it will not allow exports of basmati rice below $1,200 per tonne. This announcement comes in the wake of recent restrictions banning the export of non-basmati white rice since July 20 this year.
The commerce ministry has instructed the Agricultural & Processed Food Products Export Development Authority (APEDA) not to register contracts valued below $1,200 per tonne. Existing contracts below this price have been put on hold. APEDA will form a committee under its chairman to assess the future course of action.
“The Government has received credible field reports regarding misclassification and illegal export of non-basmati white rice,” said the commerce ministry in its statement. These reports suggest that non-basmati rice was being exported under Harmonized System (HS) codes meant for parboiled rice and basmati rice.
To further enhance export regulation, the government has advised APEDA to introduce additional safeguards. The commerce ministry stated, “Contracts for Basmati exports with the value of $1,200 per MT only and above should be registered for issue of Registration – cum – Allocation Certificate (RCAC).”
Contracts below $1,200 per tonne will be assessed by a committee established by APEDA’s chairman. This committee will examine the variation in prices and potential misuse of export routes for non-basmati white rice. A report from the committee is expected within a month, following which the government will make an appropriate decision on the lower price exports of Basmati rice.
The ministry also noted large variations in the contract price of Basmati rice being exported. The lowest contract price was reported to be $359 per tonne, in contrast to an average export price of $1,214 per tonne for the current month.
APEDA has been advised to consult with the trade community to make them aware of the new regulations and to discourage any misuse of the export window for non-basmati white rice.