Rice exporters from Haryana want the government to abolish the minimum export price (MEP) of basmati to save them from further losses.
At present, the MEP of basmati is $1100 per tonne, which is more compared with Pakistan that is exporting basmati at around $1000 per tonne,
The Centre had fixed the MEP of basmati in April 2008 to control inflation and ensure availability of foodgrain in the country. Though inflation has now significantly come down, the $1,100 MEP continues.
Sushil Jain, president, Haryana Rice Exporter Association, has urged the government to either abolish the MEP or reduce it to $800 in order compete in the international market.
“Despite the area under basmati cultivation increasing, the slowing demand for the Indian basmati in the overseas market owing to higher prices has upset export orders,” said Vijay Setia, president, All India Rice Exporter Association.
Basmati exports in 2008-09 are likely to remain the same as previous year at 1.2 million tonnes.
Exporters also urged the government to restore the Duty Entitlement Passbook (DEPB) scheme as they were likely to suffer losses to the tune of Rs 4,000-5,000 crore this year.
Haryana has over 50 basmati exporters catering to European and West Asian countries.
Source : Business Standard