Punjab’s rice traders decried the restrictions imposed on the export of fragrant, long-grain basmati rice and said the decision will lead to financial loss to the industry.
The Union government has temporarily halted export of any basmati rice consignment being sold overseas for less than $1,200 a tonne, while shipments contracted above that price threshold will continue to be allowed, according to an order issued on Saturday.
Terming the decision as a big blow to the exporters, the Rice Millers and Exporters Association, Punjab president Bal Krishan Bali urged the Centre to re-consider the order and find an immediate solution.
“The government’s sudden move to fix a minimum export price (MEP) of US $1,200 on basmati rice exports has come as a shock to the community. It will cause heavy loss to rice exporters,” he said.
“India is set to lose its large customer base. Many exporters already have large orders for rice at an average price of US$850 to US$900 per metric tonnes in process, while some have shipments in the pipeline. Some export contracts have already been registered with APEDA and banks,” he said.
Raising one more issue, Ranjit Singh Jossan, vice-president of the association, said the steamed rice and white rice have same harmonized system of nomenclature (HSN), a code classification needed for the export.
“The steam rice, a premium variety produced through a distinct manufacturing process, shares the same HSN code with white rice. This classification has unintended consequences, as restrictions imposed on white rice inadvertently affect steam rice as well. There is an urgent need to differentiate the HSN code for steam rice,” Jossan said.
{{/usCountry}}“The steam rice, a premium variety produced through a distinct manufacturing process, shares the same HSN code with white rice. This classification has unintended consequences, as restrictions imposed on white rice inadvertently affect steam rice as well. There is an urgent need to differentiate the HSN code for steam rice,” Jossan said.
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