Punjab basmati exporters worried over losing Middle East orders to Pakistan

CHANDIGARH: Basmati varieties would start arriving in the market by Sept-end and exporters in Punjab are a worried lot, apprehensive of losing out their customer base in the Middle East to rice from Pakistan.

They blame the minimum export rice (MEP) imposed by the Centre last year, and even though it was reduced from $ 1,200 per ton to $ 950 per ton, the exporters are now demanding a complete waiver. According to rice exporters, the low grade basmati varieties from Punjab, like 1509, would face stiff competition from Pakistan as the neighbouring country would be free to quote prices as low as $ 750 per ton, in contrast to the MEP of $ 950 fixed in India.

The exporters say last year too, they had expected that the MEP would be not more than $ 850 per ton but even the reduced cap is unacceptable.

With spells of rains over the week, basmati farmers and exporters are expecting a bumper crop this season, but the MEP could act as a dampener if they are unable to corner export orders in the coming weeks. “The MEP would deprive exporters from Punjab of remunerative prices, and we would further lose out their international customer base to rival Pakistan. Basmati crop is not a part of the food security and there is no need for the MEP. The issue was taken up with union minister of state for commerce and industry Jitin Prasada by the Rice Millers and Exporters Association during his recent visit to Amritsar on August 4,” said Ashok Sethi, director of Punjab Rice Millers and Exporters’ Association.

In 2022-23, the total production of basmati rice in India was 6 million tonnes, and the total national production of non-basmati rice was 135.54 million tonnes. The state produces premium quality basmati and at present has 8 lakh hectares under different varieties of the crop.

The issue of pesticides residue has also been haunting the basmati export trade with several countries including EU, USA and others who had lowered MRL’s (Minimum Residue Level), curtailing Punjab’s exports. Basmati exporters have also emphasised the need to set up farmers training and quality seed production centres with latest pesticide testing lab in Amritsar region from funds available from Basmati Export Development Foundation under Apeda as Punjab govt has offered agriculture land on lease for this purpose.

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