New Delhi: The Union government on Wednesday removed the minimum export price (MEP) of $490 per tonne on non-basmati white rice exports to boost shipments.
The Directorate General of Foreign Trade (DGFT) notified that the requirement of MEP for non-basmati white rice exports was lifted immediately.
The government had imposed a ban on non-basmati rice exports on July 20, 2023, but later withdrew the blanket ban on September 28, replacing it with the floor price.
The move follows the government's recent decision to reduce the export tax on parboiled rice from 10 percent to zero.
These steps come as India holds ample rice stock, and retail prices are stable.
Increased rice exports from India are expected to boost global supply, forcing other major exporters like Pakistan, Thailand, and Vietnam to lower their prices, according to trade officials.
Previously, the government also scrapped the MEP on basmati rice to encourage exports and improve farmer income.
From April to August this fiscal year, India exported non-basmati white rice worth $201 million, compared to $852.52 million in 2023-24.
Despite the earlier ban, exports to friendly nations, such as the Maldives, Mauritius, the UAE, and African countries, were still allowed.
Global demand for non-basmati white rice is driven by nations with large Indian diaspora populations, while disruptions in the foodgrain supply chain, partly due to the Russia-Ukraine conflict, have also played a role.
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