With the Government of India retaining the Minimum Export Price (MEP) Control order on basmati exports at $1,200 per tonne, the exporters in the state have decided to suspend the purchase of basmati paddy and rice till a fresh decision by the government.
They alleged the decision of the Centre would lead to losses to all stakeholders involved in the business of basmati trade. The Arhtiyas Association of Haryana has also extended support to the exporters.
“The Centre imposed the MEP control order on basmati exports ($1,200 per tonne) on August 25, while there are many basmati varieties that are exported between $850 and $1,050 per tonne. The gap between the MEP and the actual export prices is very high. Exporters feel the buyer may shift to Pakistan and other countries, due to which the exporters have decided to suspend the purchase of basmati paddy,” said Vijay Setia, former president of the All-India Rice Exporters Association (AIREA).
“Around 20 days ago, we were assured by the Commerce Minister that the government would reduce the MEP, but now it has announced not to do so,” Setia added. AIREA president Nathi Ram Gupta said they would not purchase basmati paddy till the issue was resolved. Ashok Gupta of the Arhtiyas Association Haryana said they had extended support to the rice exporters.
This article has been republished from The Tribune