Even though a bountiful harvest is expected, it will not help basmati farmers if the government does not review the MEP for the rice variety.

KJ Staff 

To ensure a better price for farmers as well as increase the competitiveness of basmati rice in the international market, Shiromani Akali Dal (SAD) chief Sukhbir Singh Badal has urged the Centre to reduce the minimum exports price (MEP) of the variety from USD 950 to USD 750 a tonne.

Badal in a statement said even though a bountiful harvest is expected, it will not help basmati farmers if the government does not review the MEP for the rice variety. Moreover, the government must strive to double farmers’ income, he said, adding that a review of the MEP on basmati would boost exports and lead to a spike in the prices in the country, which would help farmers in the northern region, especially Punjab and Haryana.

The SAD president said basmati exporters were in no position to purchase the variety from farmers this year because their godowns were full due to restrictive export policies for the last two years. Industrialists are not able to export at the current MEP because Pakistan is exporting the product at an MEP of USD 750 per tonne. This has also affected the international basmati market and caused uncertainty.

Badal also sought withdrawal of the ban on the export of non-basmati white rice as well as the 20 per cent duty imposed on the export of parboiled rice. While the country was losing out on precious foreign exchange, farmers were facing economic distress due to stagnation of prices. The government should allow exports of both basmati rice as well as non-basmati rice by removing the present restrictions for the welfare of farmers.

Published Date: August 19, 2024