Global Rice News

Pleas for Change from Rice Exporters

Rice exporters in India have issued a plea to the government, seeking a set export duty for parboiled rice. The current 20% duty has been extended to March 24 (Image Source: Getty). The call suggested an export duty flat fee of $80USD per ton, a markdown from the percent-based taxation. The goal behind this suggestion is a simpler, more clear-cut trade process, according to a top official from the Indian Rice Exporters Federation (IREF).

Adjusting White Rice Export Ban

The association has also requested a revaluation of the white rice export ban that started in July. The IREF has proposed that basmati rice’s minimum export price should be cut to $850USD per ton to safeguard the volume of exports and farmers alike.

Unwavering Duty, Exporting Frustrations

Along with the extended duty, the call from rice exporters also urged the government to substitute the current 20% duty with a designated charge of $80USD per ton. “This change would dissolve any transparency and billing quandaries within the rice trade,” said IREF’s national president, Prem Garg, according to PTI. Regarding the ban on white rice export, Garg stated that dialogue with the government is necessary for reconsideration.

Minimum Export Price and Competition

The IREF predicts a governmental announcement suggesting an $850USD per ton minimum export price for basmati rice, a change from the present $1,200USD rate. India’s yearly non-basmati rice export exceeds Rs 50,000 crores. These export barriers were implemented by authorities to provide adequate stock and monitor food prices. The restrictions have prompted a global market price rise in rice of 30%, which has advantaged rival countries such as Pakistan and Thailand.

Impact on Supply and Demand

According to IREF director, Sanjeev Ahuja, “The world’s most substantial rice exporter is responsible for approximately 46% of total rice exports, which equals roughly 22 million tons every year. However, only 6.9 million tons have been exported as of now.” Out of those 22 million tons, basmati rice makes up 5 million tons, with the rest consisting of white and parboiled rice. The IREF has warned that if these restrictions continue, it will likely impact export volumes this year.

Farmers have felt the strain caused by a weakened demand from exporters. Moreover, the Bharatiya Kisan Sangh has criticized the export ban announcement, saying it sends a poor message to farmers during the planting season.

Addressing Shipping Issues

IREF, with its 4,000 members, expressed that it had effectively resolved shipping matters with the government. This action led to the clearance of 90,000 tons of white rice in transit to export destinations after the ban was announced.

Sourcehttps://news.abplive.com