In a significant step to boost export of basmati rice, a premier GI variety rice of India, the Government of India has decided to remove the floor price on export of basmati rice.

In response to ongoing trade concerns and adequate domestic availability of rice, the Government of India has now decided to completely remove the floor price on Basmati Rice exports. The Agricultural and Processed Food Products Export Development Authority (APEDA) will closely monitor export contracts to prevent any non-realistic pricing of basmati rice and ensure transparency in export practices.

As a background, a floor price of $1,200 per metric ton (MT) was introduced in August 2023 as a temporary measure in response to rising domestic rice prices in the wake of tight domestic supply situation of rice and to curb any possible misclassification of non-basmati rice as basmati rice during exports, in view of the export prohibition on Non-Basmati White rice. Following representations from trade bodies and stakeholders, the government had then rationalized the floor price to $950 per MT in October, 2023.

Removal of floor price on basmati rice restores market-driven exports while APEDA will monitor contracts for pricing and transparency. Removal of the floor price on basmati rice exports eliminates the minimum export pricing requirement and restores market-driven pricing for the GI-designated commodity, while APEDA will monitor export contracts to deter non-realistic pricing and ensure transparency. The change follows an earlier temporary floor price introduced in response to domestic supply concerns and misclassification risks, later rationalized and now withdrawn after stakeholder representations, shifting regulatory focus from price control to contract oversight and trade compliance.