Goyal Agrees to Lower Basmati MEP to $950/tn, say Exporters
Published on: October 25, 2023.
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The Union government has made a significant decision to reduce the minimum export price (MEP) of basmati rice from $1,200 per tonne to $950 per tonne, according to exporters who recently met with Union Minister Piyush Goyal. This reduction in price is expected to greatly benefit basmati growers, ensuring better prices for their crop. The increase in basmati rice prices from Rs 3,200 per quintal to Rs 3,700 per quintal has prompted exporters in Punjab and Haryana to resume purchasing the grain.
Vijay Setia, former President of the All India Rice Exporters’ Association, expressed his satisfaction with this decision and stated that it will greatly improve the income of farmers and other stakeholders. The reduction in MEP will allow Indian exporters to compete with their Pakistani counterparts, who took advantage of the price restrictions in India and booked international orders at $950-1,000. With the lowered export price, Setia believes that fly-by-night exporters will disappear from the market, benefiting both farmers and exporters.
In August, the Union government imposed an MEP control order of $1,200 per tonne on basmati exports, causing concern among exporters. However, after repeated requests, Union Minister Piyush Goyal indicated on September 25 that the minimum export price would be lowered to $850 per tonne. The Department of Food and Public Distribution, under the Ministry of Consumer Affairs and Food and Public Distribution, also extended the registration-cum-allocation certificate for basmati rice beyond October 15 through a recent circular.
Punjab and Haryana are the major basmati rice exporters, with exports worth Rs 33,000 crore in the last financial year. The total basmati rice shipments from India amounted to Rs 48,000 crore. This reduction in MEP allows Indian exporters to regain their position in the market and compete with Pakistan.
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