New Delhi (PTI): Higher minimum export price has dented the overseas sale of Indian basmati rice marginally by 3 per cent to 11.49 lakh tonnes during 2008-09 fiscal, compared to 11.83 lakh tonnes in the year-ago period.
Basmati rice export from India suffered due to an increase in minimum export price (MEP) to USD 1,200 a tonne, which not only made the aromatic rice expensive but also uncompetitive in the global market, according to rice exporters.
They also pointed out that export cess of USD 200 a tonne, which was withdrawn in January this year after a gap of 10 months, made India uncompetitive as rival Pakistan was selling the aromatic rice cheaper by around USD 500 a tonne.
In 2008-09, the basmati rice shipments also include Pusa 1121 variety, which was the latest entrant to the elite aromatic rice group. The export volume of Pusa 1121 was estimated to be 40-50 per cent of the total Basmati export.
Since Pusa 1121 was notified as a Basmati rice variety only in October 2008, its shipment before that period is not included under Basmati rice category.
So, if shipment of Pusa 1121 is included, the export volume in 2007-08 would be much higher at about 18 lakh tonnes, exporters said.
The government had raised MEP on Basmati rice last year to curb exports and increase the domestic availability. It had also imposed export cess of USD 200 a tonne on the same.
Meanwhile, the export of non-basmati rice, which was banned for commercial purpose last year, stood at 7.44 lakh tonnes. India shipped non-basmati rice on humanitarian ground to few select countries.
The Centre first imposed a ban on rice export in October last year, but later lifted it by introducing an MEP on both Basmati and non-Basmati rice following protests by traders, exporters and farmers.
Source : The Hindu