With inflation touching a three-year high this week, the Government on Friday withdrew export sops on Basmati rice to improve the supply of the premium foodgrain aiming to ease its prices in the domestic market. "Export of Basmati rice shall not be entitled for DEPB (Duty Entitlement Pass Book) benefits," the Directorate General of Foreign Trade said.The step comes after the Government banned rice exports following a meeting of the Cabinet Committee on Prices (CCP) early this week. The step also follows an earlier decision to hike the minimum export price of Basmati to $1,200 a tonne to discourage exports.However, as the Government hopes increased supply of Basmati in the domestic market after the withdrawal of export incentive, the benefits from the removal of DEPB is debatable given the huge demand of Basmati rice in the global market.India exports Basmati rice mainly to Gulf countries. Pakistan and India being the only two major suppliers of Basmati in the global markets, the withdrawal of export incentive is unlikely to make much dent in its demand in Gulf countries.
