The government stated on Sunday that it is actively reviewing the decision to impose the MEP of $1200/tonne on basmati rice shipments.
“The review of free on board value for the issue of registration–cum– allocation certificate (RCAC) for basmati rice by the Agricultural and Processed Food Products Authority is under active consideration of the government.” according to a statement by the food ministry.
The ministry said that measures to make basmati rice exports to be valued at $1200/tonne or above for registration of the RCAC were implemented on August 25 to prevent ‘misclassification’ and ‘illegal’ export of non-basmati white rice, which had been banned on July 20. “It had been reported that non-basmati white rice was being exported under the HS code of Basmati rice,” the statement said.
The ministry said that based on representations received from rice exporter associations, indicating that the high FOB value is adversely affecting basmati rice exports, Union minister Piyush Goyal had attended a consultative meeting with the exporters.