Traders miffed at export of non-basmati rice without MEP

Rice exporters are miffed with the government's decision to allow export of superior non basmati rice varieties -- Sona Masuri, Ponni Samba and Matta -- without a minimum export price (MEP).  

They contended this would encourage shipment of inferior varieties and would tarnish the image of the country.

In a representation to Prime Minister Manmohan Singh, the All India Rice Exporters Association has said a recent notification issued by Directorate General of Foreign Trade (DGFT) does not clearly reflect the decision of the empowered group of ministers (EGOM) on food, as it does not mention the MEP of $850 per tonne for export of 3 non-basmati varieties. 

"The EGOM had allowed export of Sona Masuri, Ponni Samba and Matta with an MEP of $850 per tonne, but the DGFT notification issued on February 10 does not talk about the price," the Association's President Vijay Sethia said.   

The notification in its current form allows export of these three varieties at any price that the exporters want.

"These non-basmati rice exports without MEP will adversely affect domestic prices and will encourage hoarding, profiting and malpractices," he said. 

Seeking amendment to the notification, Sethia said, "Without an MEP, exporters can ship any rice in the name of these three varieties. There should be a "special price" if we are exporting "superior varieties" of non-basmati rice".

They said this would compromise on the quality which would not bode well for the country's exporters. An MEP helps to get better price for the grain in the global market and this will in turn benefit farmers, he said.

Sethia observed the government's export policy of providing adequate price -- with MEP of $900 per tonne on basmati rice is a success with good offtake.

"Export of around 2 million tonnes of basmati rice is not affecting the domestic supplies. In a similar way, an MEP of $850 a tonne for these three varieties will not put pressure on the domestic prices," Sethia noted.  

Domestic prices will not increase as the government has enough foodgrains stock in its godowns, he added.