Friday, 22 September 2023 04:26 GMT

India's Curb On Basmati Rice Exports To Benefit Pakistan: Punjab Millers

(MENAFN- KNN India) India's Curb On Basmati Rice Exports To Benefit Pakistan: Punjab Millers

Chandigarh, Sept 16 (KNN) The millers of Punjab are worried that the recently imposed export curbs by centre on basmati Rice will have a heavy blow on Indian farmers and will consequently favour the Pakistan's export industry, reported Indian Express.

On August 25, 2023, the Indian government has imposed a Minimum Export Price (MEP) of USD 1200 per Metric Tonnes (MT) on basmati rice exports, which is USD 350 higher than the average export price of approximately USD 850 per tonne.

As per the directive, the USD 1,200/tonne floor price restriction for exports is to remain effective till 15 October 2023.

But that period, from mid-September to mid-October, is considered to be the peak marketing season for the 90-100 days' basmati varieties, reported Indian Express.

This move is seen to restrict 70 per cent of India's basmati rice exports from India, as it significantly exceeds the prevailing market export price of basmati rice.

The severity of the problem lies in the fact that in India only 2%-3% of the total basmati grown is consumed here. Hence, basmati is not procured by the government but by the traders and exporters as it is primarily grown for export.

Irked over the move, the Punjab Rice Millers and Exporters Association has written to Punjab Chief Minister Bhagwant Mann, urging him to take up the matter with the Union Government and advocate for a review of the MEP, suggesting it be lowered to a range of USD 850-900 per Metric tonne (MT). They argued that a higher MEP will adversely affect Punjab's growing economy.
(KNN Bureau)


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