New Delhi:
The All India Rice Exporters Association has demanded from Prime Minister Narendra Modi to reduce the export price of Basmati rice. Regarding this, the association has written a letter to PM Modi. The association said that the minimum export price fixed for the export of Basmati rice from October 2023 should be reduced from US $ 950 per metric ton to $ 700 per metric ton. They claim that due to the high minimum export price, Indian Basmati rice is available at expensive rates in the international market, while Pakistani rice exporters are taking advantage of this and selling Basmati rice at a cheap rate of $ 800 per metric ton.
Due to limited restrictions on export, farmers growing Basmati rice are getting lower prices in the markets compared to last year. Its effect is visible on the trade of Basmati rice in the Naveen Anaj Mandi of Dadri.
The first consignment reached the market, but the price is low
The first consignment of 1509 variety of Basmati rice of Kharif season has started arriving in the new grain market of Dadri. Basmati rice is being packed in hundreds of sacks in the market. However, the farmers growing Basmati rice in Dadri area are disappointed because they are not getting the same rate as last year.
Farmer Mohammad Omar Bansi has been cultivating Basmati rice in Noorpur village of Dadri for a long time. Mohammad told NDTV, “Last year we sold 1509 variety of Basmati rice at the rate of Rs 3200 per quintal to Rs 3500 per quintal, but this year we are getting a price of only Rs 2200 to Rs 2500 per quintal”.
Along with him, Vasudev Singh, who had come to sell Basmati rice in the market, is also worried. He said, “Compared to last year, this year we are getting about Rs 1000 less per quintal for selling 1509 variety of Basmati rice”.
Big traders of Basmati rice are not buying
Basmati rice traders claim that because of the ban imposed by the government on the export of Basmati rice by imposing minimum export price, the big Basmati rice traders are not buying Basmati rice from the farmers in the markets.
Moolchand, a representative of Basnal Traders in the Naveen Anaj Mandi of Dadri, told NDTV, “The Government of India should remove the restrictions on the export of Basmati rice, so that our business can grow. The business of Basmati rice is getting affected in this market”. Gajendra Gupta, President of Galla Mandi of Dadri, says that the rate of Basmati rice in the market is much lower than last year because only a few local traders are coming here to buy Basmati rice from the farmers.
Pakistani Basmati rice exporters hold strong
On the other hand, in this letter written to Prime Minister Narendra Modi, the All India Rice Exporters Association has demanded that the minimum export price for Basmati rice was fixed at US$ 950 per metric ton in October last year, due to which the exporters of Basmati rice are incurring losses.
They argue that the price of Pakistani Basmati rice in the international market is around US$50-100 per metric tonne lower, thereby strengthening the hold of Pakistani Basmati rice exporters on the global market.
Ajay Bhalotia, general secretary of the All India Rice Exporters Association, told NDTV, “We have spoken to officials in the last 2-3 weeks. We have said that the minimum export price on Basmati rice should be reduced from $950 per metric tonne to $700 per metric tonne.”
Claimed increase in shipping and insurance costs
Basmati rice exporters argue that geopolitical tensions in the Middle East have increased shipping and insurance costs and the weakening of the rupee against the dollar during this period has made Indian basmati rice less competitive in the global market. In a letter to the Prime Minister, they argued, “In the last nine months, the prices of basmati rice have fallen in important basmati rice growing states like Punjab, Haryana and Uttar Pradesh. Rice sowing has been good this season and the Kharif crop is expected to be good. In such a situation, if the minimum export price is reduced, farmers will also benefit.”
Senior representatives of the All India Rice Exporters Association are scheduled to meet Food Minister Pralhad Joshi on this issue on Tuesday evening. It will be important to see how the Indian government deals with this demand of farmers, traders and Basmati rice exporters.
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