Government Lowers Minimum Export Price of Basmati Rice by Rs 20,000 per Tonne
Published on: October 27, 2023.
Filed under:
The Central government has reduced the minimum export price of basmati rice from $1,200 per tonne to $950 per tonne. This decision was made to address the impact of higher prices on basmati rice exports.
The Union Commerce Ministry has communicated this decision to APEDA (Agricultural and Processed Food Products Export Development Authority), instructing them to register only those contracts valued at $950 per tonne and above. APEDA’s role is to promote the export of agricultural commodities and processed food products.
Recently, basmati rice exporters and mill owners in Haryana and Punjab staged a strike demanding a reduction in the minimum export price. As a result of the strike, the prices of various varieties of basmati paddy decreased. The strike ended after the government assured all stakeholders that the MEP would be reduced.
Previously, on August 27, the government implemented a ban on the export of basmati rice priced below $1,200 per tonne to prevent illegal exports of non-basmati rice disguised as premium basmati rice. For the past two months, various Rice Exporters Associations have been urging for a reduction in this base price, claiming that India is losing its competitive edge in the export market to neighboring countries like Pakistan. They argue that India’s average export realisation for the past few years has been $800-900 per tonne.
In addition to concerns raised by the Indian rice industry, Rajya Sabha members such as Vikramjit Singh Sahney from Punjab have also expressed their concerns about the adverse impact of the $1,200 per tonne minimum export price on basmati rice shipments. They have urged the government to reconsider this price.
Commerce and Industry Minister Piyush Goyal addressed this issue with reporters on October 6, stating that the government is taking it very seriously. He has had multiple meetings with rice exporter associations in India and has collected data on basmati rice exports to different parts of the world and different varieties of basmati rice.
Source: https://www.news18.com
