NEW DELHI: The government on Friday decided to abolish minimum export prices (MEP) for onion and basmati rice, and also reduced the export duty on the staple vegetable. The move comes amid robust kharif prospects for both commodities.
According to a Directorate General of Foreign Trade (DGFT) notification, the MEP of $ 550/tonne on onion imposed in May has been removed while an additional export duty of 40% imposed earlier has been reduced to 20%. Similarly, the MEP for basmati rice of $950/tonne has been dispensed with.
“As the kharif crop prospects look encouraging because of higher sown area, the government should have removed export duty of 20% as well,” Jaydutt Holkar, director, agricultural produce market committee (APMC), Lasalgaon, Nashik, the hub of country’s onion trade, told FE. Currently the average mandi prices of onion in Lasalgaon, is Rs 4000/quintal while retail prices are in the range of Rs 55-60/kg.
The department of consumer affairs has started to sell onion at subsidised rate of Rs 35/kg from its stock of 0.47 million tonne (MT) aimed at curbing retail prices.
MEP was imposed last year on aromatic long-grain Basmati rice, which exporters said has started to adversely impact shipment as the country was losing share in the global market to Pakistan which keeps MEP of $ 700/tonne.
To preempt any rise in prices in the next couple of months, the government also decided to offload subsidised pulses through Bharat dal initiative from its buffer, while revising downward wheat stock limit for all sections of traders including retailers and processors.
Vijay Setia, managing director, Chaman lal setia exports, a leading exporter of aromatic rice, said higher MEP was started to hit mandi prices of new crop thus hitting farmers’ income.
Commerce ministry sources said that a notification regarding the abolition of MEP on basmati rice would be issued by Agricultural and Processed Food Products Exports Development Authority (APEDA). Despite the MEP, India’s basmati rice shipment rose sharply by 22% to a record $ 5.83 billion in FY24 on year and India has around 80% share in the global trade of aromatic rice.
Meanwhile, the government on Friday extended duty-free import of yellow peas used as substitute of chana (gram) by two months to December 31, according to a DGFT notification. So far about 2.1 MT of yellow peas have been imported by Canada and Russia under a free import regime as there was a drop in chana prices last year.
Officials said that the aim is to curb any possibility of rise in prices of chana in the coming months as the next crop is expected to be harvested by April next year.
Meanwhile the government has decided to sell 0.3 MT of Bharat Chana dal at a subsidised rate of Rs 70/kg through quick commerce platform and outlets of Nafed, NCCF and Kendria Bhandar from buffer stocks to curb any possibility of rise in prices. Currently the market prices of chana is around Rs 90/kg
The gram split variety of pulses reported the highest price rise of 21.65% in August while inflation in pulses category rose to 113.6% in August, the highest in the food basket.
The government has also decided to sell moong dal (Rs 107/kg), moon sabut (Rs 93/kg) and masur (Rs 89/kg) from its buffer under Bharat dal initiative through various retail channels.
Source: The Financial Express
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