'Tough EU Norms On India's Basmati Rice To Shift Trade To Pakistan'
New Delhi: Ahead of the visit of an Indian delegation to the EU to resolve the basmati rice issue, grain exporters body AIREA today said tough norms by the European Commission will hit the exports badly as the trade worth over Rs 1,700 crore could shift to Pakistan.
The European Commission has recently brought down in basmati rice the maximum residue limit (MRL) level for Tricyclazole, a fungicide used by farmers against a disease, to 0.01 mg per kg from the next year. This was done for all countries.
"The EU has virtually imposed ban on import of Indian basmati rice by reducing 100-fold the import tolerance level of 'Tricyclazole'. It is not possible to bring down the pesticide level all of a sudden to nearly zero," AIREA President Vijay Sethia told reporters here.
The Indian government team is scheduled to visit Brussels, Belgium, on July 12 to discuss the matter.
Two aromatic basmati rice varieties -- PB1 and 1401 -- are maximum exported to the EU. The shipments of these varieties with Tricyclazole MRL at 0.03 mg per kg were accepted so far from India.
At least, two crop cycles are required to effect the desired change. Moreover, there is no scientific evidence that it is harmful on human health, he said, adding that meanwhile farmers are being educated to use the fungicide in a judicious manner.
If the government does not take up the issue with the EU, basmati rice exporter Kohinoor Foods Joint Managing Director Gurnam Arora said: "Our business worth over Rs 1,700 crore will shift to Pakistan, which also exports aromatic rice to the EU. The new EU norms are unjust and one sided and not in the interest of farmers."
Pakistan exports 'Super' variety of aromatic rice and it does not use Tricyclazole on its crop and is looking at the opportunity to ship more from January 2018, he added.
India, the world's top rice exporter, shipped 3.5 lakh tonnes valuing Rs 1,744 crore of basmati rice to the EU in 2016-17. The country's basmati rice exports to the EU comprise 10 per cent of the total 40 lakh tonnes undertaken annually, as per the industry data.
Even Spain and Italy use Tricyclazole on their paddy crop. The new norm has also affected them, Arora added.
The association has made representation to commerce and agriculture ministries and sought intervention of Prime Minister Narendra Modi on the matter.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
-
India Is Going Abroad For Critical Minerals. But It May Take Years To Pay Off | The Reason Why
Although India's steps are in the right direction, they remain modest compared with India's growing dependence.
-
When Everyone Has AI, What Gives You An Edge?
India's young workforce is entering an uncertain world of work where powerful AI tools are becoming widely accessible. The advantage will belong to those who combine deep expertise with digital fluency, and the distinctly human capabilities that technology cannot manufacture.