Centre considering review of Free on Board (FOB) value for issue of Registration – cum – Allocation Certificate (RCAC) for basmati rice by APEDA
Present arrangement of 1200 USD/MT in place till a decision is taken on the FOB value
The Government has taken a series of measures in order to check the domestic prices of rice and ensure adequate availability for domestic consumers. One of the measures being that contracts for Basmati rice exports with the value of USD 1200 per MT and above only may be registered for issue of Registration – cum – Allocation Certificate (RCAC) effective from 25th August 2023. This measure was necessitated as the Government had received credible field reports regarding misclassification and illegal export of non-basmati white rice, exports of which have been prohibited with effect from 20th July 2023. It had been reported that non-basmati white rice was being exported under the HS code of Basmati rice.
Now, the new crop of Basmati has started arriving and there is generally a decline in prices when the new crop starts arriving. Based on the representations received from the Rice Exporter Associations that the high FOB value is adversely affecting the export of basmati rice from the country, Hon’ble Minister, Consumer Affairs, Food and Public Distribution had attended a consultative meet with the basmati rice exporters. Based on the discussions in this meeting, review of FOB price of contract for issue of RCAC by APEDA for export of basmati rice is under active consideration of the Government. The present arrangement will continue until an appropriate decision is taken by the Government.
