Basmati rice exporters have found their way out to beat the export ban. They are negotiating with global importers for a price exceeding $1,200 per tonne while booking new orders and the extra charges will be adjusted against future orders when the government’s order to halt exports is withdrawn.
India on Sunday announced a temporary halt of export of any basmati rice consignment for less than $1,200 a tonne, while shipments contracted above that price threshold will continue to be allowed. The move was to restrict possible “illegal” shipment of white non-basmati rice in the garb of premium basmati rice. This will remain effective till October 15, 2023. Basmati rice exporters are choosing the overbilling route so that they do not lose their export markets to Pakistan, a major competitor. “For the time being exporters can only do overbilling and export rice above $1,200. They will adjust it with the buyers in future orders,” said the CEO of a rice exporting company.
