Exporters of basmati rice have claimed that the Indian government has agreed to lower the minimum export price (MEP) of basmati rice from $1,200 per tonne, which was announced in August, to $950 per tonne after discussions with Union Minister Piyush Goyal. This reduction in MEP is expected to have a significant positive impact on basmati growers, ensuring they receive better prices for their crop. As a result, the price of basmati rice has increased from Rs 3,200 per quintal to Rs 3,700 per quintal, with exporters in Punjab and Haryana now resuming purchases of the grain, having halted them due to the higher MEP.
Vijay Setia, the former President of the All India Rice Exporters’ Association, stated that following a virtual meeting with Union Minister Piyush Goyal, the government has accepted the demand to reduce the MEP to $950 per tonne. This move is widely welcomed as it is expected to improve the income of farmers and other stakeholders. According to Setia, basmati purchases from farmers have already resumed, with the price increasing from the earlier low of Rs 3,200 per quintal to a range between Rs 3,600 and Rs 3,700 per quintal. This government assurance is seen as a significant benefit to both farmers and exporters.
Earlier in August, the Indian government had imposed an MEP of $1,200 per tonne on basmati rice exports, causing concerns among exporters. After multiple requests, Union Minister Piyush Goyal had indicated a willingness to lower the MEP to $850 per tonne in September. The Department of Food and Public Distribution, part of the Ministry of Consumer Affairs and Food and Public Distribution, had recently issued a circular extending the registration-cum-allocation certificate for basmati rice beyond October 15.
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