“Parboiled rice exporters call for uniform export duty”
Published on: October 15, 2023.
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Proposal for Changes to Rice Trade Export Duty
Rice exporting companies have called on the central government to implement a fixed export duty of $80 per tonne for parboiled rice to streamline trade. This move would replace the present duty of 20 percent. This request was announced by a senior official representing the rice exporters‘ body.
Revising Export Restrictions on White Rice
The Indian Rice Exporters Federation (IREF) has urged the government to review its export ban on white broken rice, a restriction that was put in place in July. In addition, a reduction in the minimum export price for basmati rice to $850 per tonne is sought so as to mitigate any negative consequences on export volume and farmers.
This request came following the government’s decision to extend the 20 percent duty on parboiled rice exports until March 24. By instituting a fixed export duty of $80 per tonne, ambiguity and invoicing issues in rice trade could be eliminated, according to IREF president, Prem Garg. He also emphasized the need for discussions with the government on the ban on white rice.
Proposed Minimum Export Price for Basmati Rice
IREF is hopeful for the issuance of a government notification proposing a minimum export price of $850 per tonne for basmati rice. This would represent a decrease from the current rate of $1,200 per tonne.
Export restrictions have been enacted by the government aiming to maintain an adequate stockpile of rice and to regulate food inflation. However, such measures have resulted in a 30% escalation in global rice prices, benefiting competitor nations like Pakistan and Thailand.
The Impact on India’s Rice Export Value
The Export Federation, IREF, explained that such restrictions could severely impact the country’s rice export volumes, which normally reach around ₹50,000 crore ($6.6 billion) annually in non-basmati rice alone. With only 6.9 million tonnes exported so far this financial year compared to an average volume of 22 million tonnes, rice traders are feeling the impact.
The Ramifications for Farmers
The farming community also feels the pressure from decreased demand from exporters, causing concern amongst farmers. The export restrictions announcement timing was criticized for negatively impacting farmers during the current planting season.
Despite the challenges, IREF has managed to negotiate with the government the clearance of 90,000 tonnes of white rice in transit to export destinations after the ban announcement. These shipments had been stuck at various ports,
