The Hindu Business Line : Basmati export likely to dip by 33%

NEW DELHI: The country’s basmati export may fall by 33 per cent this year, as the government made shipments expensive by imposing a cess of Rs 8,000 per tonne along with high minimum export price, raising the rice prices for overseas buyers.

“Basmati exports this year are likely to fall to around 8 lakh tonnes from 12 lakh tonnes last year,'' former All India Rice Exporters Association President Gurnam Arora said.

Mr Arora, who is also Joint Managing Director of Kohinoor Foods, said: “While we offer basmati at $1,400-1,600 a tonne in global markets due to the high MEP and duty, Pakistani exporters are selling basmati at $1,000 a tonne. The $500 difference will kil l us.'' The MEP of Basmati now stands at $1,200 a tonne in India. No European buyer has come in November this year, he said, adding that India's customers have turned to Pakistan. We urge the government to abolish the duty on exports.”

MEP should be made flexible and reviewed periodically by the Agricultural and Processed Foods Export Development Authority, taking into account the global scenario, he said. Besides, he said Pakistan has witnessed bumper crops and their basmati quality is also a bit better this year than that in India.

“Output in India may be around last year's level but quality has been dented a bit due to untimely rains during September in major growing belts of Haryana and Punjab.'' India exported around 12 lakh tonnes of basmati rice in 2007-08 whereas Pakistan sh ipped 7-8 lakh tonnes, he said. - PTI

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