Export of basmati rice priced below $1,200/tonne halted

India has decided to halt exports of basmati rice priced below $1,200 a tonne to restrict possible "illegal" shipment of white non-basmati rice in the garb of the premium basmati rice. Export of non-basmati white rice was prohibited on July 20, 2023.

The commerce and industry ministry said on Sunday that it directed trade promotion body Agricultural and Processed Food Products Export Development Authority (Apeda) not to register contracts below $1,200 per tonne. Existing contracts below $1,200 per tonne have been kept in abeyance.

A committee under the chairman of Apeda will be set up to evaluate the future course of action on such contracts.


"The government has received credible field reports regarding mis-classification and illegal export of non-basmati white rice, export of which has been prohibited with effect from July 20, 2023," the ministry said on Sunday. It has been reported that non-basmati white rice is being exported under the product classification called HS (Harmonised System) codes in trade parlance of par-boiled rice and basmati rice, it said.

"To check the domestic prices and to ensure food security, the government has been taking measures to restrict export of rice from India," the ministry said.

"The move has been sudden and unexpected. The rice exporters will face huge losses as many consignments are ready to be shipped," said Vinod Kaul, executive director of the All India Rice Exporters' Association.