The government said it is not considering any proposal to ban export of basmati rice, as it sought to dispel rumours in this regard.

On the contrary, the government is taking all steps to explore more markets and promote retail packs to improve the realisation for basmati rice, the Commerce and Industry Ministry said in a statement.

The ministry said it has come to the notice that rumours are being spread by certain elements that the government has banned export of basmati rice.

"The Government of India most emphatically clarifies that there is no truth in such rumours and the Government is not even considering any proposal to ban export of Basmati rice," the statement added.

The export of basmati rice is allowed subject to registration of contracts with the Agricultural and Processed Food Products Export Development Authority (APEDA).

There is no change in the policy and exports of basmati rice which are continuing unabated, it added.

During the period between April-August, basmati rice exports grew by 17 per cent in quantity terms as compared to the corresponding period during the previous year.

In view of softening of commodity prices, the realisation of basmati rice has gone down as has happened with many other commodities.

It is expected that a good flow of export orders is likely and the government also expects the present trend of growth in the export of basmati rice to continue, the statement added