A high-level inter-ministerial meeting is scheduled for today, December 11, 2024, to discuss the weak market price of Basmati rice.

This meeting, chaired by the Union Home and Cooperation Minister, will address the ongoing concerns related to the pricing of Basmati rice, especially after the government's decision to lift the Minimum Export Price (MAP) of $950 per tonne on Basmati rice. The policy change was intended to help Indian exporters compete with Pakistan in international markets.

Initially, it was expected that removing the MAP would encourage millers, exporters, and stockists to purchase more Basmati rice from farmers, thus increasing its market price.

However, this has not happened as anticipated. Despite the removal of MAP on September 14, 2024, Basmati rice prices remain unsatisfactory for farmers,

leading to protests demanding a statutory guarantee of Minimum Support Price (MSP). The government is working on ensuring farmers receive fair and profitable prices, but currently, Basmati rice does not have a fixed MSP, and government agencies do not purchase it. The price is still determined by market forces.

As of now, the average price of Basmati paddy has increased from Rs 2565 per quintal on September 13, 2024, to Rs 3070 per quintal, with some improvement in the price of the 1509 variety.

However, these prices are still significantly lower than last year's levels, with the same period in 2023 seeing prices around Rs 4016 per quintal.

In some parts of Uttar Pradesh, the 1509 variety of Basmati rice is being traded for less than Rs 2,500 per quintal, while in many mandis of Punjab and Haryana, it is priced below Rs 3,000 per quintal.