An Empowered Group of Ministers (EGoM) of the central government has relaxed the norms governing the export of rice from the country. The ministers agreed to allow export of non-basmati rice up to four million tones from India and also agreed on reducing the minimum export price of basmati rice to $ 700 a tonne from $ 900 a tonne.

The relaxing of norms have been welcome by the industry firms, which believe that it will boost exports from the country. Allowing firms in the country to become suppliers again after years of regularity restrictions will boost the country's profile as a major export hub for the commodity.

Gurnam Arora, joint managing director of Kohinoor Foods said that the whole industry is `overwhelmed with the decision of the EgoM'. He said that the industry had urged the government to scrap the minimum price for basmati rice altogether as it is not healthy for the government or even the suppliers to decide upon the price as it is determined by the market forces.

"If the crop is good, the demand is good, obviously export will happen. But sometimes it becomes a bottleneck, if the MEP is there. But still I think USD 200 will do a good job," said Mr. Arora.