The aim of the govt is - To secure adequate rice supplies locally.
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This week, the Indian government issued an order that all rice exported must have a minimum export price (MEP) value of 1000 USD per ton. Increased from 570 USD per ton. Almost double.
The aim is to limit rice exports by having the base price increased.
What importers in M.E and F.E and USA are doing is this. They gang up with the exporters and come to an arrangement. The importers place the order for the higher amount as demanded by the government. Then the exporter in India returns the excess money back to the overseas importer using hawala money transfers.
So, the country gains nothing, the rice still go out as before and the hawala and black money people are happy and laughing as usual. This kind of stupidity, the Indian foolish bureaucracy has done several times in the past few decades and always failed.
But they never learn. The same idiot monkeys are there in Delhi doing the same crap and nonsense. It is amazing why this happens.
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