Govt removes MEP on basmati rice

In a bid to boost exports of rice, Indian government has scrapped the minimum export price (MEP) on basmati rice. Now, producers of aromatic rice can sell it in the overseas market without any restriction. Earlier this year, the government had lowered MEP on basmati rice to $700 a tonne from $900 a tonne to make it more competitive in the global market.

India is the world’s biggest producer of basmati rice and exports more than half of its basmati rice output of around 4.6 million tonnes annually, mainly to the Middle East and Europe. In addition, the common rice variety had already got approval to sell overseas without any restriction.