A reduction is expected to greatly benefit basmati growers, ensuring better prices for their crop. The basmati rice price has risen to Rs 3,700 per quintal from Rs 3,200 per quintal as exporters in Punjab and Haryana have now started purchasing the grain again. Earlier, they had stopped the purchase due to higher MEP.
Former President of All India Rice Exporters’ Association, Vijay Setia, said, “We had a virtual meeting with Union minister Piyush Goyal late last night, in which he has accepted our demand of reducing the MEP. Thus, it will be reduced to $950 per tonne from the present $1,200 per tonne. We would welcome such a move. It will go a long way to improve the income of farmers and all other stakeholders.”
“We had already started buying basmati from farmers. Earlier, we had stopped purchasing the grain. The basmati price had plummeted to Rs 3,200 per quintal, but it has now started rising and stands between Rs 3,600 and Rs 3,700 per quintal,” said Setia. He added that this assurance of the government will go in the interest of farmers as well as exporters.
“Now we can compete with Pakistan. They got an advantage for a few days due to price restrictions in India, and booked international orders at $950-1,000 as they also grow the same basmati. But now we are back in the market. The average minimum export price for the last three years came to $850. Also, with the $950 basic price, the fly-by-night exporters will vanish from the market,” Setia further said. He said that the Union government had imposed the MEP control order on basmati export at $1,200 per tonne on August 25, while there were many basmati varieties that are exported between $850 and $1,050 per tonne, forcing them to suspend the procurement of basmati from farmers. Punjab and Haryana are the major basmati rice exporters. In the last financial year, their exports were to the tune Rs 33,000 crore, while the total basmati rice shipments from India stood at Rs 48,000 crore.
