New Delhi: In a bid to boost outbound shipments and enhance farmer’s income, the Centre has decided to remove the minimum export duty on Basmati rice. The decision comes ahead of polls in Haryana and Maharashtra, major producers.
Announcing the same on X, Agriculture Minister Shivraj Singh Chouhan wrote (in Hindi): “The Modi government, sensitive towards farmer welfare, has decided to remove the minimum export duty on Basmati rice. With the removal of export duty, Basmati producing farmers will get fair prices for their produce and with the increase in demand for Basmati rice, exports will also rise.”
Earlier, the minimum price thresholds for onion and basmati rice were removed. The Centre has also halved export duty on onion to 20 per cent from 40 per cent, effective from September 14. The 40 per cent export duty on onion had been in place since May 4.
The APEDA (agricultural and processed food products export development authority) was also requested to take immediate action to implement the decision. The Centre will also closely monitor export contracts for any non-realistic prices for Basmati exports.
Last year, the Centre had reduced the floor price for Basmati rice exports to $950 per tonne from $1,200 per tonne.
India’s total exports of basmati rice stood at $5.9 billion in 2023-24, reported the Outlook.