NEW DELHI: Rice stocks were in heavy demand on Monday, with Kohinoor Foods surging 20 per cent, after the government said the USD 950 per tonne minimum export price (MEP) on basmati rice has been removed.

Shares of Kohinoor Foods surged 20 per cent, LT Foods jumped 9.72 per cent, KRBL jumped 7.67 per cent, Chaman Lal Setia Exports climbed 5.92 per cent on the BSE.

The government on Friday said the USD 950 per tonne minimum export price on basmati rice has been removed.

Commerce and Industry Minister Piyush Goyal said the move will help boost exports and increase farmers' income.

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

The APEDA (Agricultural and Processed Food Products Export Development Authority) was requested to take immediate action to implement the decision.

However, it added that APEDA will closely monitor export contracts for any non-realistic prices for basmati exports.

India's total exports of basmati rice stood at USD 4.8 billion in 2022-23 in terms of price, while in volume terms it was at 45.6 lakh tonne.