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Basmati exporters stop buying to protest pricing curbs

16 October 2023

Basmati exporters and millers in Haryana, Punjab, and western Uttar Pradesh have stopped purchasing rice from wholesale markets due to the government's decision to maintain the minimum export price (MEP) at $1,200 per tonne. This high MEP makes it difficult for Indian basmati exporters to compete globally. Despite promises to lower the MEP to $900 per tonne, the government has not done so. Farmers are now facing losses as they are unsure where to sell their newly harvested basmati rice, which is primarily exported.

Kolkata: Basmati exporters and millers in Haryana, Punjab and western Uttar Pradesh stopped buying rice from 300 mandis (wholesale markets) across these states from Saturday evening, following the government's decision to retain the minimum export price (MEP) at $1,200 per tonne. The MEP is too high for India's basmati exporters to compete in the global markets, said industry executives

"A number of exporters and millers have stopped purchase of paddy/rice as the government has not lowered the MEP. This is despite the government promising us at the last meeting held on September 25 that the MEP will be lowered to $900 per tonne," said Vijay Setia, former president of the All India Rice Exporters Association . "The meeting, which happened virtually, was presided over by Union commerce and industry minister Piyush Goyal."

Source : indiatimes