After the Centre imposed restrictions on the export of the aromatic, long-grain basmati rice, the rice exporters in Punjab have criticised the move, saying the decision has put the rice export sector in disarray and that it would result in huge financial losses.
The Union Commerce Ministry, last week, directed the Agricultural and Processed Food Products Export Development Authority (APEDA), the agency responsible for the regulation of the export of Basmati rice, that contracts for Basmati exports with the value of US $1,200 per metric tonne and above only should be registered for the issue of Registration-cum-Allocation Certificate (RCAC).
Terming the decision a “big shock” to the exporters, the Punjab Rice Millers and Exporters Association has sought an immediate meeting with the Ministry of Commerce and APEDA to deliberate the issue and find an urgent solution.
Ashok Sethi, director of the Association, said on Monday that the sudden move of the government, fixing the Minimum Export Price (MEP) of US $1,200 on Basmati rice export has come as a big shock to the business community, which will end up bringing heavy loss to rice exporters.
“India is the leading basmati exporter and now with enhanced MEP, India would lose its large customer base and suffer an unprecedented financial crisis. Indian Exporters already have in hand big rice orders at an average price of US dollar 850 to 900 per metric tonne. While some shipments are in the process of being in the pipeline and some export contracts are already registered with APEDA and Banks, the exporters are all set to face a huge predicament and embarrassing situation on how to fulfill its export commitments,” said Mr. Sethi.
“What is worrying the exporters is that India would be labelled as a very unreliable commodity trading part of the international supply chain in the food delivery system. The government must pay heed to suggestions of all the stakeholders before taking such dramatic decision which would have far-reaching consequences on our credibility as sound trading partners the world over,” he said.
