Rice Stocks Surge After MEP Cap Lifted

16 Sep 2024 , 02:23 PM

Rice stocks were in high demand on Monday, with Kohinoor Foods up 20% after the government announced that the USD 950 per tonne minimum export price (MEP) for basmati rice had been lifted. On the BSE, shares of Kohinoor Foods increased by 20%, LT Foods by 9.72%, KRBL by 7.67%, and Chaman Lal Setia Exports by 5.92%.

The government said on Friday that the USD 950 per tonne minimum export price for basmati rice had been lifted.

Commerce and Industry Minister Piyush Goyal stated that the decision will enhance exports and raise farmers’ income.

“It has been decided to remove the current minimum export price (MEP) of USD 950 MT for issuing Registration-cum-Allocation Certificates (RCAC) for export of Basmati Rice,” according to a Department of Commerce message.

The APEDA (Agricultural and Processed Food Products Export Development Authority) was asked to take immediate measures to carry out the decision.

However, APEDA stated that it will rigorously examine export contracts for any unrealistic prices for basmati exports.

India’s total basmati rice exports in 2022-23 were valued at USD 4.8 billion, with a volume of 45.6 lakh tonnes.

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