Rice exporters to seek abolition of MEP, want DEPB benefits

New Delhi (PTI): India's rice exporters at an emergency meeting here on Monday decided to approach the government and demand an immediate reduction of the minimum export price to enable them compete with rival Pakistan.

It was decided that the All India Rice Exporters Association (AIREA) would approach the Commerce Ministry to either abolish the Minimum Export Price (MEP) of Basmati rice or cut it to at least $ 800 a tonne level, an exporter said.

The meeting was called to discuss strategy as the ministerial panel on food last week deferred a decision on reducing the MEP from the current level of $ 1,100 a tonne.

Pakistan is currently selling Basmati at USD 1,000 a tonne to lure international buyers, exporters said. Rice exporters also demanded benefits under Duty Enititlement Passbook (DEPB) scheme as they have made losses of Rs 5,000 crore this season.

"If the government did not reduce the MEP, the losses would go up to Rs 7,000 crore," the exporter said, adding this is mainly due to lower export this year.

Under DEPB, exporters get the benefit of duty-free import equivalent to one per cent of their export value. They can sell the benefit to actual users as well since DEPB is transferable.

Source: http://www.hindu.com/