Entering new markets, focusing on Africa, Europe: KRBL

He further says, minimum export price (MEP) is a matter of concern. “We are very much confident that the government will revisit the MEP issue,” he adds.

Below is the edited transcript of his interview with CNBC-TV18’s Reema Tendulkar and Ekta Batra. Also watch the accompanying video.

Q: You are diversifying into new markets. What the potential is from these new markets? When could we expect something lucrative?

A: We see Africa as to be a quite potential market now for basmati rice. Other than Africa, we are now focusing on Europe as well as South America. So, we feel all these three markets should give us good potential uplift in our export top-line this year.

Q: While you are looking to expand your basmati rice into these other export markets, on account of a higher minimum export price (MEP) vis-à-vis what the current domestic prices are exports have taken a hit. Could you tell us the rational behind exporting right now? Are you expecting a positive hearing on the MEP reduction request that the industry has put in?

A: MEP is a matter of concern. But up till now there is no impact on the companies because we are still executing the old orders which are much higher than MEP. The MEP issue to KRBL will come on 15th or 20th February, when we will ship our new contracts.

We are very much confident that the government will revisit the MEP issue. As assured by the Ministry of Commerce either it would be abolished or the MEP will come down to USD 600. This is the expectation what trade and the ministry is giving us.