October 18, 2025

Minimum Export Price

  • The Centre may be considering a minimum export price (MEP) for a host of specialty rice, including the basmati variety, to ensure that unscrupulous traders don’t ship excess quantities abroad.

ABOUT MEP

  • MEP involves “fixing a floor price” below which an exporter shall not sell the product to an overseas customer.
  • MEP is imposed in view of the rising domestic retail / wholesale price or production disruptions in the country.
  • It aims to restrict export volumes and curtail domestic prices.
  • It is a kind of quantitative restriction to trade.
  • It is intended to be imposed for short durations and is removed when situations change.
  • Section 5 of the Foreign Trade (Development And Regulation) Act, 1992, provides legal backing for MEP.
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