NEW DELHI, March 28: India has raised the minimum export price for non-basmati rice to $1,000 per metric ton free on board to protect domestic supplies as inflation rose to a near-14 month high and global prices of the grain continue to surge.

Analysts said the revision would effectively end exports of all but the highest quality grades, which have niche markets.

“The government’s move is aimed at a complete halt of non-basmati rice exports,” said Prem Garg, managing director of Lal Mahal Group, a leading rice exporter.

Rising food prices have been a major trigger for India’s widely watched wholesale price inflation, which surged to an annual 6.68 per cent in mid March, posing a major policy challenge at a time when economic growth is slowing.

India has scrapped tax incentives for exporters of steel and cement to try and tame price pressures in Asia’s third-largest economy, and last week cut import duties on key edible oils.—Reuters