Abolition of MEP boosts prices of basmati 1509 variety in Karnal dist
The recent removal of the Minimum Export Price (MEP) of $950 per tonne, which had been imposed a year ago, has brought major relief to farmers, leading to a significant rise in the price of the 1509 paddy variety. Over the past couple of days, prices have surged by Rs 300-400 per quintal. Exporters are now procuring paddy at Rs 3000-3100 per quintal, compared to Rs 2500-2700 previously. Farmers are elated by the price hike, which they believe will help them cover input costs.
“Basmati paddy 1509 was being sold at Rs 2600-2700 per quintal, compared to Rs 3200-3800 per quintal last year. After the cancellation of the MEP, prices have increased by Rs 300-400 per quintal. It is now being sold at Rs 3000-3100 in the past couple of days,” said Sumit Chaudhary, an arhtiya who is also a farmer.
Amit, a farmer at the Karnal grain market, echoed the same sentiment, saying that his paddy was procured at Rs 3000 per quintal, whereas just a few days ago, the price was Rs 2500-2600 per quintal.
Exporters have also welcomed the move, as it will enhance India’s competitiveness in the global basmati rice market.
The All India Rice Exporters Association (AIREA) and the Haryana Rice Exporters’’ Association (HREA) both expressed their happiness, saying that they had earlier requested former Chief Minister and Union Power Minister Manohar Lal Khattar, Chief Minister Nayab Singh Saini, and the Ministry of Commerce and Industry to reduce or remove the MEP on basmati rice.
“The lifting of the MEP on rice will boost exports and also ensure better prices for farmers. Now, we can compete more easily with Pakistan, which offers similar varieties at lower prices. We have repeatedly urged the Union and state governments to lift all restrictions on the export of both basmati and non-basmati rice in the interest of farmers. We are thankful to the government for this timely decision,” said Vijay Setia, former president of AIREA.
Sushil Jain, president of HREA, said that the move has already increased the price of basmati 1509 by Rs 300-400 per quintal. He expressed hope that the abolition of MEP would help increase exports by 10 per cent.
“The Ministry of Commerce and Industry had set the MEP at $950 per tonne on basmati rice exports last year, which negatively impacted both farmers and the industry. This MEP was particularly high compared to Pakistan. Now, with the MEP lifted, we will see a boost in exports,” Jain added.
Farmers, exporters relieved
The lifting of MEP on rice will boost exports and also ensure better prices for farmers. Now, we can compete more easily with Pakistan, which offers similar varieties at lower prices. — Vijay Setia, former AIREA president
