India's exports of the basmati rice to the European Union (EU) might come to a halt due to new regulations on chemical residues.
In an interview to CNBC-TV18, Anil Mittal, CMD of KRBL discussed the impact.
“There is a virtual ban imposed by EU on the import of Indian pusa basmati rice,” he said.
Out of 40 lakh metric tonne of basmati rice exported from India every year, about 3 lakh tonne of pusa rice is exported to EU countries.
Because of this ban, the livelihood and income of farmers, exporters and employees in the trade will get affected.
If no action is being taken immediately, Pakistan being the other basmati rice exporter to the EU, will gain all business that India would lose, he added.
Ban will come in effect from January 1, 2018. The industry has already started conducting workshops to educate farmers about EU decision and to impart knowledge of good agriculture practices to minimise these residues. Industry is also requesting the government to be given one year period.
The chemical used is the most useful chemical for this plant and is being used for so many years, he further mentioned.
Source: moneycontrol.com