Express News Service
CHANDIGARH: Prices of basmati rice (fine quality aromatic rice) has declined to Rs 3,200 per quintal as exporters in Punjab and Haryana stopped purchasing the grain a week ago from the market after Union government decided to maintain minimum export price (MEP) at $1,200 per tonne. Punjab and Haryana are the major basmati rice exporters. In the last financial year, their exports were to the tune of Rs 33,000 crore while the total bastmati rice shipments from India stood at Rs 48,000 crore.
According to exporters, international orders are now going to Pakistan. The Centre on August 25 imposed minimum export price of $1,200 per tonne on basmati exports, causing concern among exporters. After repeated requests, Union minister Piyush Goyal on September 25 indicated lowering minimum export price to $850 per tonne, they said.
The Department of Food and Public Distribution, under the Ministry of Consumer Affairs and Food and Public Distribution, last week, however, issued a fresh circular extending the registration-cum-allocation certificate for basmati rice beyond October 15. This prompted exporters to stop purchasing basmati from farmers, causing prices to decline.
Prices of Basmati 1,509 and 1,718 varieties have dropped by Rs 500 per quintal since last week. Ashok Sethi, director, Punjab Rice Millers and Exports Association, said: “After the Central government in late August decided not to allow exports of basmati rice below $1,200 per tonne, we held negotiations with the government last month and were given an assurance that the decision will be reviewed and the price could be around $850.”
“Last week, we came to know that the minimum export price of $1,200 will continue till further orders,” Sethi added. “So we stopped purchasing basmati from the farmers as we already have huge stocks and the rates fell to around Rs 3,200 per quintal while last year it had touched Rs 4,000 per quintal,’’ he explained.“Exporters in Pakistan are going to benefit as till last year we were selling basmati between $700-1,200 in international market as that is the rate as this fine-quality aromatic rice is sold in middle-east countrie.
Vijay Setia, former president of All-India Rice Exporters Association, said: “The average minimum export price for last three years comes to $850. Now due to rice restriction, Pakistan booked intentional orders at $950-1,000 as they also grow the same basamati.”
He goes on to add, “Through satellite imagery, we came to know that Pakistani doubled their basmati growing area and now it grow approximately 15 lakh tonnes. Due to the price restriction, the Indian exporters returned empty-handed from to recent international food fairs held at Istanbul (Turkey) and Irbil in Iraq, as international buyers turned to Pakistan. We have already given Pakistan a 45-day window for sales.’’
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CHANDIGARH: Prices of basmati rice (fine quality aromatic rice) has declined to Rs 3,200 per quintal as exporters in Punjab and Haryana stopped purchasing the grain a week ago from the market after Union government decided to maintain minimum export price (MEP) at $1,200 per tonne. Punjab and Haryana are the major basmati rice exporters. In the last financial year, their exports were to the tune of Rs 33,000 crore while the total bastmati rice shipments from India stood at Rs 48,000 crore.
According to exporters, international orders are now going to Pakistan. The Centre on August 25 imposed minimum export price of $1,200 per tonne on basmati exports, causing concern among exporters. After repeated requests, Union minister Piyush Goyal on September 25 indicated lowering minimum export price to $850 per tonne, they said.
The Department of Food and Public Distribution, under the Ministry of Consumer Affairs and Food and Public Distribution, last week, however, issued a fresh circular extending the registration-cum-allocation certificate for basmati rice beyond October 15. This prompted exporters to stop purchasing basmati from farmers, causing prices to decline. googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });
Prices of Basmati 1,509 and 1,718 varieties have dropped by Rs 500 per quintal since last week. Ashok Sethi, director, Punjab Rice Millers and Exports Association, said: “After the Central government in late August decided not to allow exports of basmati rice below $1,200 per tonne, we held negotiations with the government last month and were given an assurance that the decision will be reviewed and the price could be around $850.”
“Last week, we came to know that the minimum export price of $1,200 will continue till further orders,” Sethi added. “So we stopped purchasing basmati from the farmers as we already have huge stocks and the rates fell to around Rs 3,200 per quintal while last year it had touched Rs 4,000 per quintal,’’ he explained.
“Exporters in Pakistan are going to benefit as till last year we were selling basmati between $700-1,200 in international market as that is the rate as this fine-quality aromatic rice is sold in middle-east countrie.
Vijay Setia, former president of All-India Rice Exporters Association, said: “The average minimum export price for last three years comes to $850. Now due to rice restriction, Pakistan booked intentional orders at $950-1,000 as they also grow the same basamati.”
He goes on to add, “Through satellite imagery, we came to know that Pakistani doubled their basmati growing area and now it grow approximately 15 lakh tonnes. Due to the price restriction, the Indian exporters returned empty-handed from to recent international food fairs held at Istanbul (Turkey) and Irbil in Iraq, as international buyers turned to Pakistan. We have already given Pakistan a 45-day window for sales.’’
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