Basmati export barriers might go

The Government will soon consider the states’ demand to reduce barriers on export of basmati rice following a steady reduction in the domestic price of the foodgrain.

The proposal to reduce the minimum export price (MEP) on basmati rice will come up before the Empowered Group of Ministers (EGoM) on food headed by External Affairs Minister Pranab Mukherjee.

“There have been representations from state governments and we are taking the matter before the EGoM,” Commerce Secretary G K Pillai said today.

The Government has already liberalised export restrictions. Last month, the export duty of Rs 8,000 per tonne on basmati was abolished and the MEP reduced to $1,100 per tonne from $1,200 a tonne.

Different restrictions were imposed on export of several food articles, including basmati rice in April 2008, to check price rise, which was a fallout of overheating in the global commodity market. Since impositions of restrictions, India’s basmati rice exports have declined by 12 per cent to 7.60 lakh tonnes during the first 10 months of the fiscal.