Global Rice News

Punjab Government Requests Removal of Minimum Export Price (MEP) to Promote Basmati Rice and Address Stubble Burning Issue

The Punjab government has put forward a suggestion to the central government, urging them to eliminate the minimum export price (MEP) regulations on long-grain aromatic rice. This move aims to encourage diversification towards basmati rice and tackle the persistent problem of stubble burning in the state.

The state government of Punjab has communicated with the Union Ministry of Agriculture and Farmers Welfare, emphasizing the concerning trend of increasing paddy cultivation, which has reached 78 lakh acres this year. Paddy cultivation not only depletes groundwater but also contributes to significant methane emissions, soil degradation, loss of biodiversity, and severe environmental pollution through stubble burning.

To achieve sustainable measures in the long run and mitigate stubble burning, the state government has strongly advocated for the removal of all MEP on basmati rice. Price restrictions have artificially reduced exports, negatively impacting the profits of farmers and reducing foreign exchange for the country.

In Punjab, the cultivation area dedicated to basmati rice has witnessed a significant increase, reaching 6 lakh hectares this year. The central government has been urged to collaborate with the national diplomatic missions abroad to explore new markets for basmati rice exports, with a focus on countries like Canada, the USA, South Africa, and Central Asia.

To facilitate comprehensive diversification from paddy cultivation, Punjab has requested the central government to ensure Minimum Support Price (MSP)-based guaranteed procurement for crops such as basmati rice, maize, cotton, moong, mash, arhar, soybean, and groundnut.

Additionally, Punjab has reminded the central government of the Supreme Court’s directive to provide a cash incentive of Rs 2,500 per acre to farmers. The implementation of this incentive is estimated to cost Rs 2,000 crore. The state government suggests that if the Centre shares 50% of the burden and 75% of farmers take advantage of the incentive, the Union government’s expected financial responsibility would be Rs 750 crore. This figure could be further reduced by considering acreage limits and other relevant criteria.

The central government has been assured by Punjab that they are committed to effectively implementing the proposed incentive, utilizing automated satellite-based verification of crop burning.

Punjab has also proposed a ban on the procurement of long-duration varieties of rice and suggested extending direct industry subsidies for large balers. Furthermore, they have recommended providing gap funding for biomass power initiatives.

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