Govt likely to set a minimum export price for basmati rice, sources say

Post imposing a ban on export of non-basmati white rice, which happens to be India's largest shipments category, the government is most likely to introduce a floor price for basmati rice exports, Reuters reported citing sources familiar with the matter.

The minimum export price for basmati rice shipments may stand at $1,200 a metric tone, they added.

The sources said that having a floor price would enable authorities to make sure that the 'prohibited for shipments', non-basmati rice is not exported as basmati rice.


India and Pakistan exclusively grow premium, aromatic basmati rice. India ships out around 4 million metric tons of basmati rice to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States.

Last month, India prohibited the export of widely consumed non-basmati white rice, following a ban on broken rice exports last year.

(With inputs from Reuters)