Basmati paddy prices surge by 23 percent as MEP is removed
Over the last five days, Basmati paddy prices have increased more than 23 percent, with rates rising from Rs 2500- Rs 2600 per quintal to Rs 3000-Rs 3200 per quintal. This sharp rise has brought relief to farmers, who are hopeful for better returns from the coming harvesting season of Basmati.
Haryana's Basmati paddy markets (Dhan Mandi) have witnessed a significant price surge following the removal of minimum export price (MEP) on Basmati rice exports. on 16 Septemeber, 2024, government announced the removal of MEP on Basmati rice exports. Over the last five days, Basmati paddy prices have increased more than 23 percent, with rates rising from Rs 2500- Rs 2600 per quintal to Rs 3000-Rs 3200 per quintal. This sharp rise has brought relief to farmers, who are hopeful for better returns from the coming harvesting season of Basmati.
The 1509 variety of Basmati paddy was sold at Rs 3200 per quintal in Kaithal Mandi on Tuesday. Commission agent Sandeep from Kaithal Mandi told Rural Voice that after the MEP removal, prices surged by Rs 300- Rs 350 per quintal. The arrival of the 1509 Basmati paddy variety has also increased, and it is now fetching prices between Rs 3000 and Rs 3200 per quintal.
Despite this increase, current prices are still below the last year’s rates, which ranged from Rs 3200 to Rs 3800 per quintal. Farmers remain hopeful that the upward trend will continue, potentially bringing prices in line with or surpassing last year’s levels.
For the 2024-25 Kharif marketing season, the MSP for normal paddy (non Basmati) is Rs 2300 per quintal, while for Grade-A paddy, it is Rs 2320 per quintal. Before the removal of MEP on Basmati, traders faced difficulties exporting Basmati rice, which had significantly lowered prices for Basmati paddy. A month ago, Basmati paddy prices were only marginally higher than MSP of normal paddy prices, causing concern among farmers.
Sushil Jain, President of the Haryana Rice Exporters Association, told Rural Voice that the removal of the MEP has boosted demand for Basmati paddy, leading to a price surge. Basmati paddy, which was being sold at Rs 2600 per quintal last week, has now reached Rs 3200 per quintal in mandis. He also mentioned that lakhs of sacks of paddy are arriving in Haryana’s markets daily, with expectations that prices will continue to rise over the next one or two weeks.
While the surge in prices has brought some satisfaction to farmers, many are still hoping for further price improvements to match last year’s levels.
