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AIREA's Sudden Fee Hike Sparks Controversy, Punjab Basmati Farmers Face Flood Challenges

AIREA's fee hike could bring in over ₹31 crore this year, but exporters question its purpose. Meanwhile, Punjab's basmati farmers face practical challenges that could have been addressed with the BEDF fund.

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1 min read
In the image there is a packet with rice grains. On the packet there is a sticker with some text....
In the image there is a packet with rice grains. On the packet there is a sticker with some text. On the right side of the image there is an object on the wooden surface.

AIREA's Sudden Fee Hike Sparks Controversy, Punjab Basmati Farmers Face Flood Challenges

The All-India Rice Exporters' Association (AIREA) has sparked controversy with a sudden fee hike, leading to questions about its relevance and the majority view among exporters. Meanwhile, basmati farmers in Punjab face challenges due to flood-related sand accumulation on fields, with exporters suggesting the Basmati Export Development Foundation (BEDF) fund could have been utilised there.

The fee increase, from ₹30 to ₹70 per tonne, has been termed 'unusual' by the Punjab Rice Millers Exporters Association, which demands its immediate withdrawal. Exporters argue that the hike is neither a tax nor a cess, escaping scrutiny on its utilisation. The fee is collected by the Agricultural and Processed Food Products Export Development Authority (APEDA) for the Basmati Export Development Fund, with the contribution rate set at ₹70 per tonne of exported basmati rice. If the new rate is applied to exports between September and March, over 3 million tonnes could fetch over ₹23 crore. If India maintains last year's export level, APEDA may collect over ₹31 crore during 2025-26, a 73% increase from the year-ago. Haryana and Punjab basmati exporters' associations have objected to the fee hike, with the Haryana Rice Exporters' Association questioning its implementation and urging APEDA to reconsider and restore the earlier level.

The fee hike by AIREA has raised concerns among exporters and farmers alike, with questions about its relevance and utilisation. Meanwhile, basmati farmers in Punjab face practical challenges that could have been addressed with the BEDF fund. The future of the fee hike and its impact on exports remain uncertain, with associations urging APEDA to reconsider its decision.

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