India Imposes More Restrictions on Basmati Rice Exports

India imposed additional restrictions on the export of basmati rice in an attempt to stop non-basmati white rice exports being misclassified as basmati rice, the Ministry of Commerce and Industry announced. After barring the export of non-basmati white rice July 20, the ministry said contracts for basmati exports valued at over $1,200 per metric ton should be registered for an allocation certificate and contracts valued below $1,200 per metric ton may be kept in abeyance and evaluated by a committee for "understanding the variation in prices and use of this route for export of non-Basmati white rice."

Given the large variation in contract price, ranging from $359 per metric ton to $1,214 per metric ton, the committee will submit a report after one month, "whereafter a decision on lower price exports of Basmati planned by industry can be taken appropriately." The committee also will hold consultations with industry about the restrictions and to "discourage any use of this window for export of non-basmati white rice," the ministry said.