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Synopsis The export price of basmati rice has fallen way below the government-fixed minimum export price of $950 per tonne to $800-$850 per tonne, and despite the low prices, there are few global buyers. Domestic prices too have fallen from Rs 75 per kg to Rs 65 per kg on low export offtake. Exporters said importing countries had bought good quantities of basmati rice from India in a hurry following the uncertainty created by the government by once increasing the MEP to $1200 per tonne last August and then bringing it down to $950 per tonne in October, two large exporters said.

The Punjab Rice Exporters Association has written to the Agriculture and Processed Food Product Development Authority (APEDA) to look into the matter so that exporters do not suffer due to the imposition of MEP. APEDA is the nodal agency to issue registration of basmati export contracts. “Overseas buyers have created a huge stock of basmati rice due to the uncertainty created by imposing MEP on basmati rice.



The fear that the government might even stop exporting basmati rice prompted the buyers to stock up. Also, they bought heavily from Pakistan, a basmati producer, because of the uncertainty created by the government over MEP,” said Vijay Setia, past president of All India Rice Exporter Association and a leading basmati exporter. Basmati rice is not widely consumed in India and is mainly exported.

Generally, India produces around 6.5 million tonnes of basmati annually. Of this, around 5 million t.

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