Centre’s rice export curbs to hit basmati growers, exporters hard
Ruchika M Khanna
Chandigarh, August 29
The Centre’s decision to impose a $1200 per tonne export price control on basmati will not only hit basmati exporters, but also growers.
The order will bring basmati exports from the state to almost a standstill, as most basmati exported from here is valued at $900-950 per tonne. As a result, the basmati crop will be available only for domestic consumers. The glut will bring down the prices of the crop, adversely impacting the growers.
Will ensure no one suffers
We are committed to the welfare of farmers and exporters. Steps will be taken to ensure that no one suffers by the Centre’s move.
Gurmeet Singh Khudian, agri minister
Vijay Setia, former president, All-India Rice Exporters’ Association, said it was strange that non-basmati parboiled of $350 per metric tonne with 20% duty was allowed for export, whereas basmati of $900 per metric tonne was not allowed. “To control inflation, restrictions should be on non-basmati varieties only,” he said.
In 2022-23, India’s total exports of basmati rice was 45.6 lakh tonne at $4.8 billion, whereas exports of non-basmati stood at 177.9 lakh tonne at $6.36 billion in the last fiscal.
Pak may benefit
Pakistan, which is also a big exporter of premium rice, could benefit from India’s latest curbs
The total area under basmati has increased to nearly 6 lakh hectare in the state, up from 4.94 lakh hectare last year. As paddy saplings were damaged in July, the area under basmati has increased further.
Arvinder Pal Singh, an Amritsar-based exporter, said the Centre’s order would have a cascading effect on the export as well as the state’s economy. “The PUSA 1509 variety of basmati is selling at Rs 3,200 per quintal. When we evaluate its cost for parboiled rice after processing and including other charges, we can fix an export price of $900 per tonne. This variety is therefore not eligible for export. At least 30% area under basmati is under PUSA 1509. Its prices will begin to fall,” he said. The maximum area under basmati is under PUSA 1718, followed by PUSA 1509, PUSA 1401 and PUSA 1121.
Ranjit Singh Josan, vice-president, Rice Millers and Exporters’ Association, said: “Many exporters had big orders at an average price of $800- $900 per tonne, and export contracts were already registered with APEDA and banks.”
