Basmati exporters threaten not to buy crop from Punjab

Tribune News Service

Chandigarh, September 4

Rice exporters have threatened not to buy the basmati, citing “high fees” being levied in the state while purchase of basmati from Haryana, Delhi, Uttarakhand and Uttar Pradesh attracts no additional charges.

Punjab charges two per cent as Market Fee, two per cent as Rural Development Fund and 0.25 per cent as Cancer Cess. Last year, basmati traders and exporters had paid Rs 97.73 crore as fees and in 2018 they had paid Rs 102.68 crore.

“No fee will be charged from us, if we buy basmati from the states, which have adopted the Centre’s ordinances. Export is a highly price sensitive and competitive business. If we buy produce from Punjab, our cost will go up by 4.25 per cent vis-a-vis other states,” said Ashok Sethi, director, Punjab Rice Millers Export Association.

This year, exporters have been betting big on basmati export from Punjab, which contributes around 40 per cent of all basmati exports from India. Basmati variety PUSA 1509 is expected to arrive in mandis from second week of September.