Press Information Bureau

Government of India

Ministry of Commerce & Industry

21-December-2011 15:27 IST

Reducing MEP of Non-basmati Rice to Boost Export

The EGoM in its meeting held on 9.2.2011 permitted the export of 1,00,000 MTs of Sona Masuri (from Chennai & Vishakhapatnam port), 25,000 MTs of Ponni Samba (from Tuticorin port) and 25,000 MTs of Matta rice (from Kochin port) which was notified through notification no. 21 dated 10.2.2011 and Public Notice No. 36 of 1.3.2011. A Minimum Export Price (MEP) of USD 850 per MT (PMT) for such exports was notified through Public Notice No. 37 dated 08.03.2011 and Public Notice No. 44 of 31.03.2011. During April, 2011 to July, 2011, 1.10 lakh tonnes of non-basmati rice has been exported. However, to remain price competitive in the international markets, the MEP of USD 850 was reduced to USD 600 PMT through Public Notice No. 72 dated 12.08.2011.

The EGOM, in its meeting held on 8.9.2011, permitted the export of non-basmati rice through all Electronic Data Interchange (EDI) ports only to be effected by the private parties out of privately held stocks without any explicit quantitative restriction or MEP.

This information was given by Shri Jyotiraditya M. Scindia Minister of State for Commerce and Industry in written reply to a question in Rajya Sabha today.

DS/GK

Minimum export price reduction for non-basmati rice enables private exports from EDI ports without explicit quantitative restrictions. Reduction of the Minimum Export Price (MEP) for non-basmati rice lowered the price floor to restore international competitiveness, and a later executive decision authorised exports through all Electronic Data Interchange (EDI) ports by private parties from privately held stocks without any explicit quantitative restriction or MEP, replacing the earlier constrained, notified consignments mechanism.