CHANDIGARH: In a big relief for basmati farmers and exporters, the Union government has reduced the minimum export prices (MEP) of basmati rice to $950 per tonne from $1200 per tonne announced in August. This reduction is expected to greatly benefit basmati growers, ensuring better prices for their crops.
Talking to The New Indian Express, former President of All India Rice Exporter Association Vijay Setia said, "We had a virtual meeting with the Union Minister Piyush Goyal late last night in which he accepted our demand of reducing the MEP. We welcome the step of the government. It will go a long way towards improving the income of farmers."
"We had already resumed buying basmati from the farmers, thus now the prices of basmati which had declined to Rs 3,200 per quintal have again risen and are between Rs 3,600 to Rs 3,700 per quintal," said Setia.
He said, "Now we can compete with Pakistan which got an advantage for a few days as they also grow the same basmati. But now we are back in the market. The average minimum export price for the last three years came to $850. Also, with the 950 USD basic price, the fly-by-night exporters will vanish from the market."
He said that the Union government had imposed the MEP control order on basmati export at $1200 per tonne on August 25, while there were many basmati varieties which are exported between $850 and $1050 per tonne, forcing them to suspend the procurement of basmati from farmers.
Punjab and Haryana are the major basmati rice exporters. In the last financial year, their exports were to the tune of Rs 33,000 crore while the total basmati rice shipments from India stood at Rs 48,000 crore.
The Centre on August 25 imposed a minimum export price of $1,200 per tonne on basmati exports, causing concern among exporters. After repeated requests, Union minister Piyush Goyal on September 25 indicated lowering the minimum export price to $850 per tonne. The Department of Food and Public Distribution, under the Ministry of Consumer Affairs and Food and Public Distribution, had a few days back issued a fresh circular extending the registration-cum-allocation certificate for basmati rice beyond October 15.