Basmati Row: Doors of almost all major markets closed, why are traders not buying Basmati from farmers?

Basmati Row: Doors of almost all major markets closed, why are traders not buying Basmati from farmers?

Traders are protesting these days in many states of the country. The protest by traders is showing its impact in states like Haryana, Punjab and Uttar Pradesh, due to which the purchase of Basmati is stopped in about 300 wholesale markets. Farmers are suffering losses due to this.

Procurement affected in 300 mandis

According to an ET report, this protest by Basmati exporters and millers is taking place in Haryana, Punjab and Western North It is quite effective in the state. Purchasing of Basmati from farmers has stopped in about 300 wholesale markets in the three states. Traders have stopped purchasing Basmati from farmers from Saturday. According to the report, traders are opposing the minimum rate i.e. MEP fixed by the Central Government on the export of Basmati. A minimum export price of $1,200 per tonne has been set for export. To curb illegal exports, the government had said to stop the export of Basmati at a rate less than $ 1,200 per tonne. At the same time, traders say that the MEP fixed by the government is very high. This will reduce competition for Indian Basmati traders in the global markets. Traders are demanding to reduce MEP. Due to this demand, they have stopped purchasing Basmati paddy and rice from farmers in wholesale markets.

Traders made this claim

According to the report, the government promised the traders. It was said that MEP would be reduced. Quoting Vijay Setia, former president of All India Rice Exporters Association, it has been told that the government had held a virtual meeting with traders on September 25. It was assured in the meeting that the MEP on Basmati will be reduced to $900 per tonne. However, this has not been done yet. For this reason, the traders have expressed their protest and decided to stop purchasing.

Domestic consumption is low, dependence on exports

If exporters are to be believed, till now the new crop of Basmati variety 1509 has not been produced. Only 20 percent of the quantity has been purchased from farmers. The remaining 80 percent is with the farmers or lying in the market. If traders do not buy them then the problems of the farmers will increase and they will suffer huge losses. Let us tell you that domestic consumption of Basmati is very low. Most of the Basmati produce is exported to other countries.

Government is reviewing

On the other hand, the government says that it is reviewing the MEP on Basmati. . The Food Ministry issued a statement in this regard on Sunday. In the statement, the ministry said that the review is being done by the Agricultural and Processed Food Products Authority. The ministry said that the traders’ stand regarding MEP has been understood and their demands are under consideration.

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