Basmati Farmers ask Union Govt. to Promote Cultivation, Waive off MEP

The Punjab Rice Millers and Exporters Association (PRMEA) has urged the Indian govt. to promote the cultivation of aromatic basmati rice over the more water-intensive paddy to address the state’s severe groundwater crisis. 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. In a letter to Finance Commission Chairperson Arvind Panagariya, the association emphasized that basmati rice, which requires less water, offers higher returns, and can be sown later, and should be prioritized. The association pointed out that basmati rice is a heritage produce of Panjab and cultivated on approximately 1.5 million acres annually, mainly in the riverine belt. PRMEA is also concerned about losing business to Pakistan in the Middle East due to the Minimum Export Price (MEP) imposed by the Indian govt. PRMEA raised the issue with the Union Minister of State for Commerce and Industry, Jitin Prasada, during his recent visit to Amritsar, urging for a complete waiver of the MEP. The MEP, which was initially set at $1,200 per ton and later reduced to $950 per ton, is still considered too high by exporters, especially when compared to Pakistan, where the price can be as low as $750 per ton. In addition to pricing concerns, Panjab’s basmati exports have also been impacted by issues related to pesticide residue, with several countries, including the USA and European Union lowering the Minimum Residue Level (MRL) for imports. Exporters have urged for farmer training centers, quality seed production, and advanced pesticide labs in Amritsar, funded by the Basmati Export Development Foundation (SDW Vol 2 Issue 18, Story 8).