Chandigarh, Oct 24 (IANS): Punjab MP Vikramjit Singh Sahney on Tuesday appreciated the Centre's decision for revising the minimum export price (MEP) of basmati rce from $1200 to $950 per tonnes.

This issue was raised by the Punjab Rice Millers and Exporters Association in an interaction with Chief Minister Bhagwant Mann, where Sahney was assigned the task to take up the matter with the Central government.

Sahney had communicated to the Union Commerce Ministry that it was not a rational decision and it would have an adverse impact on the growers and traders.

He said this was not an issue of one cropping season but it would have had larger economic impacts on India.

“Pakistan is our competitor in the international market for basmati exports. After India’s decision of $1,200 MEP, Pakistan strategically pegged their MEP to $1,050. The international market would had imported all rice from Pakistan only,” he said in a statement here.

The MP added he would like to express his gratitude to the Ministry of Commerce which considered the request of basmati traders and revised the MEP.

Punjab Rice Millers and Exporters Association president Arvinder Singh had previously said there was panic among traders of the basmati rice.

“Now with this decision we are much relieved to augment exports,” he added.