Tribune News Service

Basmati rice being packed at a rice mill. Tribune file

Parveen Arora

Tribune News Service

Karnal, August 7

Fearing an adverse impact on basmati exports, the Haryana Rice Exporters’ Association (HREA) has urged the government to remove the minimum export price (MEP) for basmati exports.

As per the exporters, this demand was made to benefit exports, traders, and farmers. The association handed over a memorandum to Union Power Minister Manohar Lal Khattar for Union Minister of Commerce and Industry Piyush Goyal, highlighting the disadvantages of the current MEP set at $950 per MT.

The exporters pointed out that several basmati varieties cannot be sold above $750/MT, making it difficult for them to compete in the international market. They said while production has increased, the prices of basmati have dropped by 20-25 per cent as compared to the previous season. The average export price in February was $1,119 per MT, which fell to $1,054 per MT in June this year, said Sushil Jain, president, HREA.

The association expressed concern that the prices of basmati varieties in the international market have been declining every month since the war in Ukraine and Middle-East began. They highlighted that the freight, particularly to Gulf countries, have surged by five times, affecting the purchasing power of buyers. Additionally, they said Pakistan, a key competitor, offers lower prices with a variety-specific MEP as low as $700 per MT, making it challenging for Indian exporters to sell at the current MEP of $950.

“We demand that the government should exempt the MEP on basmati exports,” he added.

Production up, prices down

Several basmati varieties cannot be sold above $750/MT, making it difficult for us to compete in the international market. While the production has increased, the prices of basmati have dropped by 20-25 per cent as compared to the previous season. — Sushil Jain, president, Haryana rice exporters’ association

Published Date: August 8, 2024