MEP of ‘1509’ basmati leaves growers, exporters concerned

Tribune News Service

Parveen Arora

Karnal, August 30

The Union government’s decision to fix a minimum export price (MEP) of $1,200 per tonne for basmati rice is affecting exporters who already have orders in their hands as well as farmers who have cultivated the “1509” variety of the aromatic grain.

The prices of paddy variety “1509” have come down sharply in the grain markets and farmers are worried about a further fall in prices. It was being procured at Rs 3,400-3,500 per quintal, instead of Rs 3,700-3,800 per quintal last week. The farmers have appealed to the Centre to either revoke the price control or provide them with adequate compensation for their losses.

“Farmers of Haryana, Punjab and UP cultivate the ‘1509’ variety mainly for export purposes as they fetch good returns. At present, UP farmers are coming to grain markets of Haryana with their produce. It was being procured at Rs 3,700-3,800 per quintal last week, but after the decision of the Union government, it is being procured at Rs 3,400-3,500 per quintal. The decision has come at a time when the crop is coming to mandis, which will hit the farmers hard,” said Sewa Singh Arya, BKU president.

Ashok Gupta, president, Haryana State Arhtiyas Association, said Haryana farmers cultivate the “1509” variety on around 50 per cent area and their crops would come to mandis from the first week of September. After the government’s decision, the prices of the ‘1509’ variety have dipped. If the Centre does not reduce the MEP and create an export-friendly environment, only a few exporters will come to grain markets and the farmers will not get good prices,” he stated.

The Centre aims to curb the inflationary pressure on the domestic market. The exporters said basmati had no linkage with inflation, but the new condition had halted their consignments at the ports and they were worried about the future of exports.

“Fixing MEP at $1,200 will affect the export of basmati parboiling segment. The parboiled basmati rice varieties — “1509”, “1718” and “1121” — have around 80 per cent contribution in export and are traded in the price range of $850-$1,050 per tonne. The quantity of steam rice and traditional rice, which are traded above $1,200, is very low,” said Sushil Jain, president, Haryana Rice Exporters Association.

Reduce minimum export price

If the Centre doesn’t cut the minimum export price and create an export-friendly environment, only a few exporters will come to grain markets and farmers will not get good prices. — Ashok Gupta, president, Haryana state arhtiyas association

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