Thomas urges FM to hike non-basmati rice MEP to $500/tonne
Food Minister K V Thomas has requested Finance Minister Pranab Mukherjee to consider hiking the minimum export price (MEP) for non-basmati rice by at least USD 100 a tonne from the current USD 400 a tonne.
July 27, 2011 / 16:24 IST
Food Minister K V Thomas has requested Finance Minister Pranab Mukherjee to consider hiking the minimum export price (MEP) for non-basmati rice by at least USD 100 a tonne from the current USD 400 a tonne.
After an over three-year ban, the government recently allowed the export of one million tonnes of non-basmati rice on private account at a low MEP of USD 400 a tonne."I have brought this issue (MEP of non-basmati rice) to the notice of the Finance Minister as well as the Cabinet Secretary. I have informed them that the MEP cannot be lower than the procurement cost," Thomas told reporters here.The export price of USD 400 a tonne is lower than the FCI's procurement cost of USD 500 a tonne, though global prices are ruling high at USD 525 a tonne, he said."MEP should be at least be at USD 500 a tonne," Thomas noted.The Food Ministry has received representation from industry bodies such as the All-India Rice Exporters Association (AIREA), who have alleged that low export prices would lead to diversion of low-priced grain from ration shops for export."In the face of these facts, setting an MEP of USD 400 defies all logic and if implemented, may lead to a scandal," AIREA President Vijay Sethia said.He said allowing exports of rice at a low MEP was not only against domestic traders, but also "anti-farmer". According to the notification issued by the Directorate General of Foreign Trade (DGFT), out of the total permissible non-basmati rice exports this crop year, a trader can export a maximum of 12,500 tonnes and the list of successful allottees will be declared today.India's rice production increased to 95.32 million tonne in the 2010-11 crop year (July-June) from 89.09 million tonne in the previous year. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
