Rice’s minimum export price lifted, says newspaper. (चावल का न्यूनतम निर्यात मूल्य वापस लिया गया – समाचार पत्र )

Main Points In Hindi (मुख्य बातें – हिंदी में)

1. न्यूनतम निर्यात मूल्य (एमईपी) का撤销: पाकिस्तान के वाणिज्य मंत्रालय ने चावल के लिए न्यूनतम निर्यात मूल्य (एमईपी) को वापस ले लिया है, जिससे निर्यात मूल्य में कमी और अंडर-इनवॉइसिंग की बढ़ोतरी की आशंका है।

2. भारत के चावल निर्यात पर प्रतिबंध में ढील: भारत सरकार ने 1 अक्टूबर से चावल निर्यात पर प्रतिबंध में ढील दी है, जिससे पाकिस्तान को अपने चावल निर्यात की मार्जिन में कमी का सामना करना पड़ सकता है।

3. पाकिस्तान और भारत के बीच संभावित मूल्य निर्धारण युद्ध: चावल निर्यातक और विशेषज्ञों ने चेतावनी दी है कि इस निर्णय के परिणामस्वरूप पाकिस्तान और भारत के बीच मूल्य निर्धारण युद्ध शुरू हो सकता है, जिससे पाकिस्तान के चावल निर्यात की आय पर नकारात्मक प्रभाव पड़ेगा।

4. अंतरराष्ट्रीय बाजार में गिरती कीमतें: वाणिज्य मंत्रालय का कहना है कि वैश्विक चावल की कीमतों में हालिया गिरावट और भारत द्वारा निर्यात प्रतिबंध में ढील ने एमईपी को बाधा बना दिया था, जिसके परिणामस्वरूप इसे वापस लिया गया।

5. आरईएपी की असंतोषजनक स्थिति: चावल निर्यातक संघ (आरईएपी) इस निर्णय से असंतुष्ट था क्योंकि पहले की व्यवस्था के तहत उन्हें कुछ चावल किस्मों के लिए उचित मूल्य नहीं मिल रहा था और उन्होंने समायोजन की मांग की थी।

Main Points In English(मुख्य बातें – अंग्रेज़ी में)

Here are the main points from the article regarding the withdrawal of the Minimum Export Price (MEP) for rice in Pakistan:

1. Withdrawal of MEP: The Commerce Ministry of Pakistan has withdrawn the Minimum Export Price (MEP) for rice, which is expected to lead to a decrease in export prices and an increase in under-invoicing during the current fiscal year.

2. Background of MEP Introduction: The MEP was originally introduced in November 2022 as a response to India’s ban on rice exports, allowing Dubai-based Indian traders a minimum margin for exporting Pakistani rice under their trademarks.

3. Market Implications: Experts predict a price war between Pakistan and India, with concerns that the withdrawal of the MEP could diminish Pakistan’s rice export revenues and complicate the pricing landscape.

4. Economic Impact: Pakistan’s rice exports rose dramatically in FY24, reaching $3.93 billion, but without the MEP, there is a risk of not maintaining previous year’s export values even with a good harvest.

5. Rationale Behind the Decision: The decision to rescind the MEP was influenced by the recent decline in international rice prices and India easing its export restrictions, making the MEP a barrier for Pakistani rice exporters in the global market.

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Complete News In Hindi(पूरी खबर – हिंदी में)

Complete News In English(पूरी खबर – अंग्रेज़ी में)

Islamabad: The Ministry of Commerce has withdrawn the Minimum Export Price (MEP) for rice, a move expected to lead to a decrease in export prices and an increase in under-invoicing during the current fiscal year.

Last November, the ministry had set MEPs for various rice types, allowing Indian traders based in Dubai to export Pakistani rice under their trademarks with a minimum margin. This decision was primarily due to the Indian government’s ban on rice exports, which created a demand for rice among Dubai-based Indian exporters.

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The ministry has now issued a notification to cancel the November 2023 directive. Since October 1, the Indian government has eased its restrictions on rice exports.

Shamsul Islam Khan, a rice exporter, told Dawn that the sudden decision to withdraw the MEP could trigger a pricing war between Pakistan and India. He expressed concerns that this would negatively impact the export price of Pakistani rice as the country may not receive its fair value.

Exporters are worried that a decline in Pakistan’s export earnings could lead to a pricing battle with India.

Khan added that the risks of transfer pricing and underreported exports would increase. He indicated that India would likely respond similarly to stay competitive against Pakistani exporters, who deal with large quantities of coarse and basmati rice. While the ministry’s decision may seem beneficial in the short term, it could ultimately lead to a decline in Pakistan’s rice export revenues.

In FY24, Pakistan’s rice exports reached $3.93 billion, showing an 83% increase from over $2.15 billion the previous year, with a 62% rise in volume during the period.

A key rice exporter based in Karachi informed Dawn that before the 2023 notification, there was an agreement between the Trade Development Authority of Pakistan (TDAP) and the Rice Exporters Association of Pakistan (REAP) regarding minimum pricing for specific types of rice. However, in November 2023, the ministry unilaterally canceled this arrangement and issued notifications for MEPs, which REAP disapproved of, especially since higher MEPs were set for some varieties. REAP had repeatedly requested adjustments for certain types.

According to the exporter, the MEP was withdrawn due to two main reasons: the fall in international rice prices and the likelihood that Dubai-based Indian exporters would shift sourcing to Indian farmers at lower prices. Notably, well-known Indian brands in Dubai purchase rice from Pakistan, repackage it under Indian labels, and sell it globally, allowing these brands to dominate major markets while Pakistani exporters rely on them for sales.

The new REAP president will assume office on September 30 and plans to address this issue with TDAP. Without the MEP, there is a risk that Pakistan may fail to match last year’s export prices despite good harvests.

In contrast, a formal announcement from the Ministry of Commerce stated that the decision to withdraw the MEP was made upon the request of REAP and on the instructions of Commerce Minister Jam Kamal. The statement clarified that the MEP was initially implemented in response to rising global rice prices and India’s export ban. However, with recent drops in international rice prices and the elimination of export restrictions by India, the MEP had become a barrier for Pakistani rice exporters in the global market.

Source: Dawn, published on September 29, 2024.

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