Punjab News : As the Basmati rice harvest season approaches, exporters in Punjab are growing increasingly concerned about losing their market share in the Middle East to competitors from Pakistan. The anticipated arrival of Basmati varieties by the end of September has heightened these concerns, particularly due to the minimum export price (MEP) imposed by the Indian government.
Concerns Over High Minimum Export Price (MEP)
Last year, the Centre set the MEP for Basmati rice at $1,200 per ton, which was later reduced to $950 per ton. However, exporters are now calling for a complete waiver of the MEP, arguing that even the reduced price is too high. They fear that the lower-grade Basmati varieties from Punjab, such as the 1509 variety, will face intense competition from Pakistan, where exporters are free to quote prices as low as $750 per ton.
- Impact on Market Competitiveness
Exporters in Punjab had hoped that the MEP would be set at no more than $850 per ton, but even the reduced cap of $950 is viewed as a significant disadvantage. With the region experiencing favorable weather conditions, Basmati farmers and exporters are expecting a bumper crop this season. However, they worry that the high MEP could hinder their ability to secure export orders in the coming weeks, potentially depriving them of profitable prices and further eroding their international customer base to rival Pakistan.
Potential Consequences for the Basmati Industry
The situation is particularly concerning as exporters brace for stiff competition in a key market like the Middle East, where price sensitivity is high. Without a more competitive pricing structure, Punjab’s Basmati rice industry could face substantial challenges in maintaining its market share abroad.
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