Looking to export bulk basmati rice? The Haryana Rice Exporters’ Association (HREA) has called on the government to eliminate the minimum export price (MEP) for basmati exports due to concerns about the potential negative impact on these shipments. The demand, according to the exporters, was made in order to help farmers, traders, and exports. The group presented a paper outlining the drawbacks of the current MEP, which is fixed at $950 per MT, to Union Minister of Commerce and Industry Piyush Goyal for Union Minister of Power Manohar Lal Khattar.

Increased Production Leads to Basmati Price Crash

The Basmati Rice Exporters noted that it is difficult for some basmati kinds to stand out in the global market since they cannot be sold for more than $750/MT. According to them, prices for basmati have decreased by 20–25 percent from the previous season, despite an increase in supply. According to Sushil Jain, president of HREA, the average export price was $1,119 per MT in February and dropped to $1,054 per MT in June of this year.

Declining Basmati Prices Amidst Global Crises

The group voiced concern over the fact that since the start of the conflict in the Middle East and Ukraine, the prices of basmati types on the worldwide market have been falling every month. They emphasised that the freight has increased five times, especially to Gulf countries, which has an impact on consumers' purchasing power. Furthermore, they claimed that Pakistan, a significant rival, offers cheaper rates, with variety-specific MEP as low as $700 per MT, making it difficult for Indian Basmati Rice Exporters to sell at the $950 MEP now in place. He continued, “We demand that the government exempt the MEP on exports of basmati.”

Our inability to sell some basmati kinds for more than $750/MT makes it challenging for us to be successful on the global market. Prices for basmati have decreased by 20–25 percent from the previous season, despite an increase in production. — President of the Haryana Rice Exporters' Association, Sushil Jain

Conclusion

Finally, citing concerns that it diminishes the competitiveness of Indian exporters, the Haryana Rice Exporters' Association (HREA) calls for the elimination of the Minimum Export Price (MEP) on basmati rice. They draw attention to the fact that boosting the MEP is essential for the financial viability of both farmers and traders due to declining prices, rising manufacturing, and rising logistics expenses, particularly in comparison to Pakistan's lower pricing.

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