The government has implemented various measures to monitor domestic rice prices and ensure ample availability for local consumers. One such measure is the registration of contracts for Basmati rice exports with a value of USD 1200 per metric ton and above for the issuance of Registration–cum–Allocation Certificate (RCAC), effective from August 25, 2023. This step was taken in response to credible field reports indicating misclassification and illegal export of non-basmati white rice, which was prohibited for export from July 20, 2023. There were reports of non-basmati white rice being exported under the HS code of Basmati rice.
With the arrival of the new crop of Basmati and the typical decline in prices during this period, the Minister of Consumer Affairs, Food, and Public Distribution participated in a consultative meeting with Basmati rice exporters. Based on the discussions in this meeting, a review of the Free On Board (FOB) price of contracts for issuing RCAC by APEDA for the export of basmati rice is actively being considered by the government. The current arrangement will persist until an appropriate decision is made by the government.