New Delhi (PTI): With a sharp fall in inflation, the Government is likely to relax next week barriers like cess and fixation of minimum price, in export of Basmati rice.

"The Empowered Group of Ministers will take up the issue of Basmati export duty and the minimum export price (MEP)," a senior government official said.

The government had slapped export duty of Rs 8,000 per tonne and fixed an MEP of 1,200 dollar per tonne for the aromatic rice variety early this fiscal when the inflation had become a major worrying point.

With the price rise declining to 6.38 per cent for the week ended December 20 and the country's exports showing a negative growth, eGoM, headed by External Affairs Minister Pranab Mukherjee would consider relaxing the export norms at least for Basmati rice.

Inflation had peaked to 12.91 in August.

However, the government, it is learnt, does not want to lift ban on the non-Basmati rice in the run-up to elections and in the wake of food prices still ruling high.

Traders are happy that export restrictions are being relaxed at least partially.

All India Rice Exporters Association President Vijay Sethia expected exports of Basmati rice to go up by at least 20 per cent once curbs are removed.

Annually India exports the premium quality rice worth about 1.5 billion dollars mainly to the Gulf and Europe. The country's basmati exports touched 1.19 million tonnes in 2007-08 (October-September).

"A reasonable MEP would facilitate exports of traditional and other varieties of rice. Pakistan has already got orders from the buyers in Europe and Saudi Arabia" Sethia said.