Centre’s Slash in Export Price Brings Huge Relief to Basmati Farmers in Punjab and Haryana
Published on: October 25, 2023.
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The Union government has recently announced a significant reduction in the minimum export prices (MEP) of basmati rice, lowering it from $1200 per tonne to $950 per tonne. This decision is expected to have a positive impact on both basmati farmers and exporters, ensuring better prices for their crops. The move comes after a virtual meeting between the Union Minister Piyush Goyal and the former President of All India Rice Exporter Association, Vijay Setia.
Following the meeting, Setia expressed his satisfaction with the government’s decision, stating that it would greatly improve the income of farmers. He also mentioned that basmati prices, which had previously declined to Rs 3,200 per quintal, have now increased to the range of Rs 3,600 to Rs 3,700 per quintal. This adjustment in the MEP allows Indian basmati rice to compete with its Pakistani counterpart, which had gained an advantage for a short period of time. Setia added that the average minimum export price over the past three years was $850, and with the new price of $950, fraudulent exporters will no longer plague the market.
Initially, the Union government had set the MEP control order on basmati export at $1200 per tonne on August 25. However, this posed difficulties because there are various basmati varieties that are exported between $850 and $1050 per tonne, which forced exporters to cease procuring basmati from farmers. Punjab and Haryana are the key regions for basmati rice exports, with exports amounting to Rs 33,000 crore in the previous financial year, while the total basmati rice shipments from India reached Rs 48,000 crore.
On September 25, Union Minister Piyush Goyal hinted at lowering the minimum export price to $850 per tonne after receiving repeated requests from exporters. To further support the export of basmati rice, the Department of Food and Public Distribution, under the Ministry of Consumer Affairs and Food and Public Distribution, recently issued a circular extending the registration-cum-allocation certificate for basmati rice beyond October 15.
Source: [New Indian Express](https://www.newindianexpress.com)
