Haryana farmers’ hardship intensifies as traders and exporters strike
Published on: October 16, 2023.
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Basmati Rice Farmers in Haryana Feeling the Impact of Paddy Procurement Boycott
The impact of private rice traders’ decision to stop procuring paddy is keenly felt among Haryana’s Basmati growers. This move is in response to the Central Government’s resolution to uphold the $1,200 (₹99,935) per tonne minimum export price (MEP) market cap. Backing the cause, the rice suppliers of the All India Rice Exporters Association (AIREA) have elected to discontinue procurement from Sunday onwards, leaving farmers to protect their market yields in the mandis.
Balkar Singh, a farmer, explains the situation is alarming as he waits for rice exporters from Pakistan to buy his three acres of produce at the Kaithal grain market, with no buyer in sight. This sentiment is echoed by other farmers, such as Hakam Singh, who brought the pusu 1,847 of three acres to the mandi, only to find no auction held on Sunday, leaving hundreds of farmers in limbo.
Amarjit Chhabra, State President of the Haryana Rice Millers and Dealers Association, criticizes the procurement suspension and justifies the actions of rice exporters protesting the MEP. Chhabra argues, “The price discrepancy between the international market and the government’s fixed MEP is such that traders will fail to attract buyers at the current price. Hence the decision to stop buying paddy.”
The repercussions of this decision have had a detrimental effect on farmers. With no buyers for their produce, they’re worried about a potential decrease in prices across all basmati varieties. The premiums such as moochal, pusa 1121, and pusa 1718 saw prices around ₹4,200 a quintal last week while the lower graded pusa 1509 and 1692 sold at about ₹3,500.
Vija Setia, former president of AIREA, has stated that the Central Government’s decision could have far-reaching impacts. Setia suggests this move could lead to significant losses for local growers and rice suppliers while indirectly benefiting Pakistan rice suppliers who may gain ground in the international market as a result.
Immediate Demand for Decision Change on MEP
Even though government officials have signaled they are considering a demand to reduce the MEP to $850 (₹70,788), rice suppliers insist that a prompt decision is crucial for farmers and traders alike. As the situation continues to deteriorate in North Indian mandi yards, these exporters are unable to buy paddy. Setia expressed concern, pointing out that their rivals in Pakistan have “a large basmati crop acreage and may take over the entire market in the absence of Indian exporters.”
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