NEW DELHI, Sept 13 (Askume) – India raised the minimum export price of basmati rice on Friday following a government order to help farmers struggling with debt and high costs as the new season harvest approaches.
Last year, New Delhi had set the minimum export price (MEP) at $1,200 per tonne and later reduced the MEP to $950 per tonne.
As supplies have risen, exporters have urged the government to cut or cancel MEP to ensure farmers are not left with excess stock when the new crop arrives a month later.
In July, Askume reported that IndiaMinimum export price of Basmati rice may be reduced.
“The decision to abolish MEP will help India export large quantities of basmati rice and ensure good returns for our farmers,” Satish Goyal, president of the All India Rice Exporters Association, told Askume.
Thousands of poor and heavily indebted farmers complain of falling incomes and rising prices of fuel and fertilizer.
India and Pakistan are the sole Basmati rice producers, and both are committed to promoting high-quality rice varieties similar to French Champagne or Darjeeling tea.
Basmati rice is not widely consumed in India and unlike common rice varieties, the government does not purchase it to create a national stock.
Citing the rich biodiversity of Basmati rice in India, Goyal said there is a huge overseas market for the Basmati rice variety, which sells at around $700 a tonne, so scrapping MEP completely is a logical step.
Goyal said, “Today’s decision will enable us to regain our global market share.”
New Delhi exports 4 million to 5 million metric tonnes of basmati rice, a premium long-grain variety renowned for its aroma, to countries including Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States.
Europe is another big market for rice.
Separately, India on Friday lifted the European Parliament’s restrictions on onions.
Farmers are angry over the export ban on agricultural products imposed by Prime Minister Narendra Modi’s government .
Political commentators say the government is keen to appease farmers ahead of assembly elections in states such as Haryana and Maharashtra, after Modi’s Bharatiya Janata Party suffered losses in rural constituencies in this year’s general election.
