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Rice exporters across India have ceased purchasing paddy from markets in Haryana, Punjab, Uttar Pradesh, Rajasthan, Delhi, Madhya Pradesh, and Jammu and Kashmir since Sunday, October 15, 2023. This decision comes in response to the Central Government’s refusal to reduce the Minimum Export Price (MEP) of Basmati rice.
Government Maintains Basmati Rice MEP
The All India Rice Exporters Association had requested the Central Government to lower the MEP of Basmati rice from $1200 per tonne to $850 per tonne. However, the government has decided to maintain the price at $1200 per tonne until further notice.
Vijay Setia, former president of the All India Rice Exporters Association, stated that Indian exporters were unable to secure deals for rice variety 1509 at the World Food event in Turkey and Iraq due to cheaper offerings from other countries, including Pakistan.
Nathi Ram Gupta, President of the All India Rice Exporters Association, revealed that in September, Union Minister Piyush Goyal held a meeting with 165 exporters nationwide. These exporters expressed their inability to export 1121 and 1509 varieties of rice at a price of $1200 per tonne. Instead, they proposed an MEP of $850 per tonne.
Paddy procurement halted amidst MEP Controversy
Despite forming a committee that visited Haryana, Punjab, and UP and submitted a report to the government, the Central Government has instructed exporters to continue exporting rice at $1200 per tonne until further orders.
This decision has led to a halt in paddy procurement in seven states including Haryana. Farmers and farmer organizations are protesting this move as it has caused a drop in paddy prices by one thousand rupees per quintal in markets of Kaithal and Kurukshetra districts.
Ratan Mann, Haryana State President of Bharatiya Kisan Union, criticized this decision as a conspiracy against farmers. He urged for exports to be opened up so that farmers’ crops could be sold at higher prices.
Adding to the farmers’ woes is the unseasonal rain and hail due to western disturbance which has damaged standing crops in fields and wetted paddy lying in markets. An estimated 31 lakh tonnes of paddy is lying in markets across affected districts. This situation has left farmers with no choice but to sell their crops at reduced prices.
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