The Union Government has decided to remove the minimum export price (MEP) thresholds on the export of basmati rice, the Ministry of Commerce and Industry said in a statement on Saturday. The government aims to boost farmers’ incomes by allowing the export of basmati rice, a premier GI-tagged variety from India.
Karnal: The Ministry of Commerce and Industry of the Union Government on Saturday has announced to remove the minimum export price (MEP) thresholds on the export of basmati rice aiming to boost farmers’ incomes by allowing the export of basmati rice, a premier GI-tagged variety from the country. The Agricultural and Processed Food Products Export Development Authority (APEDA) will closely monitor export contracts of basmati rice to ensure transparency in export business. Information reveals, in August 2023, in a decision the price of USD 1,200 per metric tonne (MT) was set for basmati rice exports as a temporary measure due to a tight supply and rising rice prices in the domestic market, and also prevent the misclassification of non-basmati rice as basmati during exports transactions, since the export of non-basmati white rice was adversely affecting domestic demand.
According to the president of All India Rice Exporters Vijay Setia and Haryana State Rice Exporters Association President Susheel Jain, Basmati rice is being produced in the country in 95 districts of the seven states: Haryana, Punjab, Western U.P, Himachal, Uttarakhand and Jammu-Kashmir being cultivated in 7.8 lakh hectare area. During last year 5.30 Million Ton (MT) Basmati rice was exported from the country which included 1.86 MT basmati rice exported from Haryana having more than 35% share.
Rice industry in Haryana has nearly 1800 rice mills and nearly 100 rice exporters. According to information, the decision for removal of MEP on basmati rice is likely to bring more than 10% growth in export business in the state, likely to bring an increase in income to the farmers growing basmati rice worth rupees 10 thousand crore annually. The rice exporters have made a request to the government in the centre to remove MEP from non-basmati white rice also. According to information, last year 1509 quality rice produced in Haryana had witnessed a drop in the prices, which was sold at price ranging between Rs 2200 to 2400 per quintal due to excess stocks of rice remaining unsold in the previous year. The price has increased at present now being sold at the price ranging between Rs 2800 to 2900 per quintal
