Exporters in seven states halt purchase of Basmati rice: What’s the reason?
Published on: October 18, 2023.
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**Rice Exporters in India Cease Purchasing Paddy Amidst MEP Controversy**
*Rice exporters across India have stopped purchasing paddy from various states in response to the Central Government’s decision to maintain the Minimum Export Price (MEP) of Basmati rice at $1200 per tonne.*
The All India Rice Exporters Association had requested a reduction in the MEP of Basmati rice to $850 per tonne, but the government has chosen to keep it at $1200 per tonne for the time being.
According to Vijay Setia, former president of the All India Rice Exporters Association, Indian exporters were unable to secure deals for rice variety 1509 at the recent World Food event in Turkey and Iraq due to the lower prices offered by other countries, including Pakistan.
Nathi Ram Gupta, President of the All India Rice Exporters Association, revealed that Union Minister Piyush Goyal held a meeting with 165 exporters in September. These exporters expressed their inability to export varieties of rice at the current MEP of $1200 per tonne and proposed a reduction to $850 per tonne.
Despite a committee being formed to investigate the matter and submit a report to the government, the Central Government has instructed exporters to continue selling rice at the current MEP until further notice.
This decision has resulted in the suspension of paddy procurement in seven states, causing a drop in paddy prices in markets. Farmers and farmer organizations are protesting against this move, as it has significantly affected their income.
Ratan Mann, Haryana State President of Bharatiya Kisan Union, has criticized the government’s decision, calling it a conspiracy against farmers. He has urged for the opening up of exports to ensure that farmers can sell their crops at higher prices.
In addition to the MEP controversy, farmers are also dealing with the consequences of unseasonal rain and hail due to western disturbance, which has damaged standing crops and wetted paddy in markets. Approximately 31 lakh tonnes of paddy are currently lying in affected districts’ markets, leaving farmers with no choice but to sell their crops at reduced prices.
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