Global Outlook

While the export of basmati (long-grain aromatic rice) may have increased by 25% in the first quarter of 2022–2023 compared to the corresponding period in the previous year, basmati traders are concerned that the export joy may not last long because the UAE and other Middle Eastern nations have decided to implement strict standards for maximum residue levels (MRLs) for pesticides as of September 1. Strict testing requirements have already been put in place by the US and EU for the import of Indian basmati. When pesticides are used correctly and in accordance with good agricultural practice, an MRL is the highest level of pesticide residue that is legally permitted in, on, or in contact with food or feed. Exporters claim that they were able to obtain notification from the Punjabi government prohibiting the use of 10 pesticides beginning on August 12 this year until the crop is harvested. They are now requesting assistance from the state government to pressure the federal government to o...