CHANDIGARH – High import duty imposed by Iran, the largest market for Indian basmati, and the alleged market manipulation by certain rice exporters in Punjab is responsible for the fall in the prices of Indian basmati in the international market. In the past one month, the price of all varieties have fallen from $1400 per tonnes to $950 per tonnes.
Sources said Iran had imposed a 40 per cent duty on imports in a bid to protect its own basmati growers. Last year, basmati exports to Iran were 1.4 million tonnes. This year, the exporters foresee nearly a 25 per cent drop in the exports. Between April and June this year, basmati rice exports have declined by 12 per cent.
Haryana and Punjab together contribute nearly 75 per cent of rice exported to Iran. Trade analysts said since Punjab-based exporters were sourcing paddy at prices almost 40 per cent lower than the paddy being sourced by Haryana exporters, they were ready to export rice at lower prices. As a result, the price of Indian basmati had fallen in the international market. Though Punjab has announced to levy just 1 per cent market fee and 1 per cent Rural Development Fund on rice exporters from Haryana buying paddy from Punjab, the former say because Punjab had withdrawn the market fee, Rural Development Fund and Infrastructure Development Fund imposed on rice exporters, they could now buy paddy at prices much lower than exporters from other states.
Also, the market price of paddy in Punjab is 30 per cent less than that of similar varieties in Haryana. It is Rs 1,800-Rs 2,200 per quintal as against Rs 2,900 per quintal in Haryana.
