Lok Sabha Question No. 642 (UNSTARRED), answered on 2023-12-06
Subject: Capping Prices of Basmati Rice
Ministry: COMMERCE AND INDUSTRY
Asked by: Harsimrat Kaur Badal

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 642 TO BE ANSWERED ON 06/12/2023

## CAPPING PRICES OF BASMATI RICE

## 642. SHRIMATI HARSIMRAT KAUR BADAL:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मं त्री ) be pleased to state:

- (a) whether the Government is aware that imposing an economic curb on the export of  Basmati  rice  by  capping  Minimum Export Price at $1200 per tonne  has impacted the income of Punjab farmers adversely, if so, the details thereof;
- (b) whether  the  Government  is  aware  that  farmers  sow  Basmati  because  of  its demands in foreign markets
- (c) if so, the reasons for the Government taking regressive steps to limit the sale of Basmati within the country;
- (d) whether the Government is aware that this will resultantly bring down prices of Basmati  in  the  country  and  Basmati  of  Pakistan  will  be  available  to  foreign  buyers  at competitive prices;
- (e) if so, the long term rationale and exigency behind the decision;
- (f) whether  the  Government  is  planning  to  give  relief  to  the  farmers  by  allowing them to earn by sale of their produce instead of imposing unilateral arbitrary restrictions on sale of farm produce like Basmati; and
- (g) if so, the plan chalked out in this regard?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jherh vuqfiz;k iVsy½

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

(a) to (g) The  price  cap  on  export  of  Basmati  rice  was  not  aimed  at  restricting  its exports. The Government had received credible field reports to the effect that non-basmati white rice, export of which has been prohibited with effect from 20 th July  2023, was being exported under the HS code of Basmati rice. In order to control illegal exports of non-basmati rice, the Government, on 26 th August 2023, issued directions to the Agriculture & Processed

Food  Products  Export  Development  Authority  (APEDA)  to  register  contracts  for  Basmati exports only with the value of USD 1200 per MT and above. After extensive stakeholders' consultations,  the  Government  has  decided  to  reduce  the  base  price  for  registration  of contracts by APEDA to USD 950 per MT, with effect from 26 th October 2023.

The price restriction on export of Basmati rice has not impacted its exports, as is reflected in month-wise  comparison  of  exports  during  2022-23  and  2023-24  (up  to  October)  detailed below:

| Export of Basmati Rice   | Export of Basmati Rice   | Export of Basmati Rice   | Export of Basmati Rice   | Export of Basmati Rice   |
|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|
|                          | Qty. in                  | Qty. in                  | Value in USD Million     | Value in USD Million     |
|                          | 2022-23                  | 2022-23                  | 2023-24                  | 2023-24                  |
|                          | Qty.                     | Value                    | Qty.                     | Value                    |
| April                    | 3.20                     | 324.16                   | 4.25                     | 470.23                   |
| May                      | 3.66                     | 374.09                   | 4.05                     | 446.88                   |
| June                     | 4.40                     | 459.43                   | 3.42                     | 381.43                   |
| July                     | 3.80                     | 409.31                   | 4.37                     | 475.07                   |
| August                   | 3.70                     | 408.15                   | 4.01                     | 451.09                   |
| September                | 2.80                     | 303.21                   | 2.98                     | 365.29                   |
| October                  | 2.54                     | 266.18                   | 3.01                     | 368.54                   |
| TOTAL                    | 24.10                    | 2544.53                  | 26.08                    | 2958.52                  |
| Source: DGCI&S           | Source: DGCI&S           | Source: DGCI&S           | Source: DGCI&S           | Source: DGCI&S           |

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