EU Ban Basmati Imports Indian Consumer To Get Premium Basmati At Affordable Prices

In a not so very surprising decision, European Union has decided not to allow Basmati rice imports from India. Such decision may affect the price of Basmati rice in the market. The European Union which has witnessed many such decisions has done it in the name of strict laws for higher standards of no use of pesticides.

This decision appears to be strange in nature. Basmati rice is India’s preferred domestic variety of rice with the highest standard of texture and aroma.
All India rice exporters association (AIREA) has told that permission to export Basmati rice to EU nations had been earlier given till 31 December. Post that the permission will automatically get cancelled due to no extension. The reason given is the use of fungicides for the safety of Basmati rice to EU nations (another possible incident of fumigation laws manipulation). It is also evident that India usually exports (PB-1) and 1,401 Basmati breeds to EU.

AIREA also asked for one year’s extension to the given export limits and may soon ask union government to intervene in the matter.        

It will definitely increase the domestic availability of Basmati rice by at least 1,00,000 tonnes to 3,00,000 tonnes, which may send a chill to domestic consumers.

An expert on the consumer affairs matter had termed it as a bright chance to ordinary consumer class which would never have the chance to opt for premium Rs 200 per kilograms or higher rate’s Basmati rice.

According to the food and agriculture organisation of UN, Basmati is still believed to be a luxury food item among a huge 300 million plus middle-class consumer market of India.

India’s overall progressive procurement for rice as on 1 September 2017 for the year 2016-17 was 387.38 lakh tonnes against the procurement of 341.43 lakh tonnes in the parallel period of previous year. The procurement of wheat for the rabi marketing season (RMS) for 2017-18 was 308.01 lakh tonnes against the procurement of 229.62 lakh tonnes in the corresponding period of RMS of the year 2016-17.

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