New Delhi: The pressure on removing of the current Rs 8,000-a-tonne duty on export of basmati rice is intensifying, with paddy realisations for farmers ruling 10-12 per cent lower compared to last year. On Oct 20, prices of Pusa Basmati-1 paddy averaged Rs 1,800 a quintal in the major mandis of Punjab and Haryana. The trade blames the lower realisations to the Rs 8,000-a-tonne (Rs 800 a quintal) export duty clamped on basmati shipments since May 10.
Since the exporters are not able to pass on the tax to the purchasers, they are loading it as much as possible on to the farmers. The situation has been rendered worse by competition from Pakistan, following the dip in its currency from Rs 63 to over Rs 81-to-a-dollar since the begin of the current fiscal much more than the Indian rupee's corresponding declined from Rs 40 to Rs 49.3. On the other hand, export of basmati as well as Pusa-1121 rice from India remains to attract an MEP of $1,200 or Rs 48,000 a tonne. Indian exporters have not been able to ink a single contract for rice from the new Pusa Basmati-1 crop.
Since the exporters are not able to pass on the tax to the purchasers, they are loading it as much as possible on to the farmers. The situation has been rendered worse by competition from Pakistan, following the dip in its currency from Rs 63 to over Rs 81-to-a-dollar since the begin of the current fiscal much more than the Indian rupee's corresponding declined from Rs 40 to Rs 49.3. On the other hand, export of basmati as well as Pusa-1121 rice from India remains to attract an MEP of $1,200 or Rs 48,000 a tonne. Indian exporters have not been able to ink a single contract for rice from the new Pusa Basmati-1 crop.
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