Prime Minister Narendra Modi on Saturday hailed recent changes in the agricultural export policy, saying easing export norms for basmati rice and onion and increasing import duty on some edible oils will increase farm incomes and create rural jobs.
The government on Friday scrapped the minimum export price (MEP) of $950 per tonne for basmati rice and also scrapped the MEP of $550 per tonne for onion, according to a government statement.
The government on Saturday increased import duties on crude palm oil to 20 percent and refined sunflower oil to 32.5 percent in a move to support the country’s oilseed farmers and processors.
In a post on X, PM Modi said his government is leaving no stone unturned to support farmers who are working tirelessly for the food security of the country.
“Whether it’s reducing export tax on onions or increasing import duty on edible oil, many of these decisions will immensely benefit our food producers. This will increase their incomes and also increase employment opportunities in rural areas,” the Prime Minister said.
Modi’s comments came in response to a post by Agriculture Minister Shivraj Singh Chouhan, in which he thanked the Prime Minister for taking important decisions on onion, basmati rice and edible oil in the interest of farmers.
Stating that the Modi government was “concerned” about farmers’ welfare and was committed to their “development” and “progress”, Chouhan said a reduction in export tax on onion from 40 per cent to 20 per cent would help onion farmers increase exports at better prices.
Chouhan added that the removal of export duty on basmati rice is aimed at ensuring fair prices to producers and increasing demand for the premium rice.
Regarding refined oil, the minister said increasing basic customs duty on refined oil to 32.5 per cent “will increase demand for mustard, sunflower and groundnut for refined oil.”
Chouhan expressed optimism that farmers would get better prices for these crops and more employment opportunities would be created with the rise in refineries in small and rural areas.
