The government has taken measures to control domestic rice prices

The government has taken measures to control domestic rice prices and ensure an adequate availability for domestic consumers. One of these measures is that export contracts for Basmati rice with a value of $1200 or more per metric ton can be registered under the Registration-cum-Allocation Certificate (RCAC) from August 25, 2023.

According to the Ministry of Consumer Affairs, this measure was necessary because there were credible reports from local regions regarding the misclassification of non-Basmati white rice and illegal exports, and a ban had been imposed on its export since July 20, 2023. It was reported that non-Basmati white rice was being exported under the HS code of Basmati rice. The Ministry states that with the onset of the new Basmati crop, there is usually a decrease in prices, and the High Free on Board (FOB) prices, based on applications received from rice exporting associations, have a negative impact on the export of Basmati rice from the country.

Regarding consumer matters, the Minister of Food and Public Distribution recently participated in a consultation meeting with Basmati rice exporters. Based on the discussions held during this meeting, the review of the FOB price for the Registration-cum-Allocation Certificate (RCAC) for the export of Basmati rice by APEDA is under the consideration of the government. The Ministry states that the current arrangement will continue until an appropriate decision is made by the government.