Haryana’s Paddy Farmers Find Relief as Traders and Exporters End Strike
Published on: October 20, 2023.
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Bringing Relief to Farmers: AIREA Ends Strike, Allows Traders to Procure Paddy
In a welcome move for farmers, the All India Rice Exporters Association (AIREA) has decided to end its strike and allow traders and exporters to procure paddy from farmers. This decision comes after a five-day deadlock and brings much-needed relief to the farming community. The association, along with rice exporters and millers, had suspended procurement operations in protest of the Union government’s decision to maintain the minimum export price (MEP) for aromatic long-grained basmati rice at $1,200 per tonne.
Speaking about the decision, Nathi Ram Gupta, President of AIREA, stated that while the final decision on the MEP is still pending, they have allowed traders to procure paddy from farmers for the domestic market in the interest of the farmers. He also mentioned that the matter regarding the MEP is being discussed by a group of ministers and that they do not know when a decision will be made to revise the MEP. However, in the meantime, traders are permitted to start procurement from Friday.
The Ministry of Consumer Affairs, Food, and Public Distribution issued a letter on October 14, stating that the present arrangement of MEP will continue beyond October 15 until further orders. This decision was met with criticism from rice exporters and millers, who decided to boycott the procurement of all basmati varieties.
The government’s decision is seen as impractical by traders and experts, as they believe they will not find buyers in the international market willing to purchase basmati rice at $1,200 per tonne when the average price in the international market has been around $900 per tonne for several years.
This development brings relief to basmati growers who were struggling to sell their produce due to the lack of buyers. Haryana, being the largest producer of basmati rice in the country with a 42 percent share in total exports, was hit particularly hard by the strike. With harvesting at its peak, the farmers were facing significant challenges.
In conclusion, the decision by AIREA to end the strike and allow traders to procure paddy is a positive development for farmers. It alleviates their concerns and provides them with an opportunity to sell their produce. The issue of MEP is still unresolved, but the association has taken a step in the right direction by prioritizing the interests of the farmers.
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