The Government has introduced additional safeguards for the export of Basmati rice to prevent exports of Non-Basmati white rice through misclassification as Basmati. Ministry of Commerce and Industry has directed the Agricultural and Processed Food Products Export Development Authority (APEDA) which is responsible for the regulation of the export of Basmati rice in this regard. The Ministry said that contracts for Basmati exports with a value of 1200 US dollars per Metric Tonne only and above should be registered for the issue of Registration – cum – Allocation Certificate. It added that contracts with the value below it can be kept in abeyance and may be evaluated by a committee to be set up by the Chairman, APEDA, for understanding the variation in prices and use of this route for the export of non-Basmati white rice. The Ministry further stated that it has been noted that there has been a large variation in the contract price of Basmati being exported with the lowest contract price being  359 US dollars Per Metric Tonne in the backdrop of an average export price of  1,214 dollars per Metric Tonne during the current month. The Ministry asked the Committee to submit its report within a period of one month, whereafter a decision on lower price exports of Basmati planned by industry can be taken appropriately. It said, APEDA should hold consultations with trade to sensitize them about the matter and work with them to discourage any use of this window for the export of non-basmati white rice.
 
The Ministry added that to check the domestic prices and to ensure domestic food security, the Government has been taking measures to restrict the export of rice from India. It added that the export of non-basmati white rice was prohibited on the 20th of last month.