India-Pak rice war deals a blow to Basmati growers

Indian Basmati rice farmers are facing a financial crisis, with a steep drop in paddy prices threatening their livelihoods.

- NEERAJ MOHAN

Prices have dropped by more than Rs 1,500 per quintal during the ongoing Kharif Marketing Season, with current rates between Rs 2,200 and Rs 2,600 per quintal, compared to last year's Rs 3,500 to Rs 5,000.

This sharp decline, especially in Haryana and Punjab, has left many farmers devastated, with some resorting to drastic measures such as dumping their produce on roads a first in recent memory for the Basmatiproducing region of Punjab.

The crisis stems from competitive actions between India and Pakistan, the two largest Basmati producers.

On September 28, Pakistan's Commerce Minister Jam Kamal Khan announced the removal of the Minimum Export Price (MEP) for rice varieties, a policy that had been in place since 2023.

India had earlier lifted its own MEP of $950 per metric tonne for Basmati rice, which was followed by the lifting of the export ban on non-Basmati white rice and the introduction of a new MEP of $490 per metric tonne. This competition has led Pakistan to sell its rice at lower prices, allowing it to capture a larger share of the international market, at the expense of Indian exporters.