Government’s new minimum export price on natural honey , Pg8

Key Highlights:

• The government has reduced the Minimum Export Price (MEP) on natural honey to $1,400 per tonne.
• The previous MEP was $2,000 per tonne.
• This revised MEP is effective until the end of this year.
• Exports of natural honey below $1,400 per tonne are now prohibited.

Detailed Insights:

• The MEP is the minimum price below which exports are not allowed, set by the government to prevent undercutting and ensure fair value for exporters.
• The reduction in MEP aims to boost honey exports by making Indian honey more competitive in the international market.
• This decision could impact honey producers, exporters, and related industries by influencing profitability and export volumes.
• The revised MEP may also affect the domestic price of honey, potentially benefiting consumers.
• The major exporting destinations are the US, UAE, Saudi Arabia and Qatar.
• The main honey producing states are Uttar Pradesh, West Bengal, Punjab, Bihar and Rajasthan.
• In 2023-24, India exported the commodity worth USD 177.52 million.

Key Concepts Involved:

• Minimum Export Price (MEP): The floor price set by the government for exports to prevent price-based competition.