The Modi government has taken a big step to increase the income of farmers and strengthen the country’s agricultural products in the global market. The government has provided relief to farmers and exporters by removing the minimum price limit on the export of Basmati rice. Along with this, an attempt has been made to give a new direction to the agriculture sector by decisions like increasing the duty on refined oil and removing the ban on onion export. It is worth mentioning that elections are to be held in Haryana as well as Maharashtra in the coming months, in such a situation, the local farmers of these states are going to get a big benefit from this decision of the government.
The Modi government has taken a big decision to remove the minimum export price (MEP) limit on the export of Basmati rice. The Ministry of Commerce and Industry issued a statement on Saturday informing about this decision. This step of the government has been taken with the aim of increasing the income of farmers, so that the export of India’s major GI-tagged Basmati rice can be promoted.
This decision has been taken in view of the adequate availability of domestic rice and trade concerns. The government had set a minimum limit of US$ 1200 per metric ton for the export of Basmati rice in August 2023, to prevent shortage of domestic supply and rising prices. Along with this, an attempt was also made to stop the wrong export in the name of Basmati by banning the export of non-Basmati rice. But, after the appeal of trade organizations and stakeholders, this limit was reduced to US$ 950 per metric ton in October 2023.
It is worth mentioning that APEDA will now keep a close watch on export contracts so that transparency in the prices of Basmati rice is maintained and unrealistic pricing can be prevented.
Apart from this, in the interest of farmers, the government has increased the basic duty on refined oil to 32.5%, which will increase the demand for mustard, sunflower and peanut crops and farmers will get better prices for their products. Union Agriculture Minister Shivraj Singh Chauhan posted on X, saying, “The government has increased the basic duty on refined oil to 32.5%. This will help farmers get better prices for their crops and the development of refineries in small and rural areas will also increase employment opportunities.”
The government has also increased the duty on import of edible oils to 20%, which will take the total effective duty to 27.5%. Its purpose is to promote the production of soybean products, which will also increase exports. On Friday, the government also decided to remove MEP on onion exports. This move of the government will directly benefit the farmers, because now onion can be exported without any limit.