Parboiled rice exporters call for uniform export duty
Published on: October 15, 2023.
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Rice Exporters Advise for Flat Export Duty Measures
The rice exporters sector has urged the Central Government for an $80 uniform export duty for parboiled rice. Currently, the export duty sits at 20%. This transition will facilitate smoother business transactions, according to a top executive of the rice exporters’ organization.
The Indian Rice Exporters Federation (IREF) is also asking the Government to rescind its export prohibition on white broken rice set in July, and lowering of the minimum export price for basmati rice to $850 from $1200 per tonne. They’re aiming to avert unfavorable effects on export levels and farmers alike.
Extended Duty on Parboiled Rice
Last week, the Government carried forward the 20% duty on parboiled rice exports till March 24. The IREF Chairman expressed to PTI that the 20% export tax should be replaced with $80 per tonne to clear out ambiguity in rice trade.
Reconsidering the White Rice Ban
The Federation aims to open discussions with the Government to lift the prohibition on exporting white broken rice.
Minimum Export Price Reduction
The IREF expects the Government to release a statement for basmati rice, suggesting a minimum export price of $850 instead of the existing $1,200 per tonne.
The non-basmati rice export value from India surpasses Rs 50,000 crore on a yearly basis. To ensure sufficient rice stock and check food inflation, the Government has imposed these export constraints. However, these limitations have led to a 30% hike in international rice prices, benefiting rival countries like Pakistan and Thailand.
Export Restrictions Impacting Major Rice Players
The General Director of IREF has mentioned that the world’s largest rice exporter contributes nearly 46% to total rice exports, translating to around 22 million tonnes each year. However, the exports so far have only been 6.9 million tonnes.
Of the 22 million tonnes, 5 million tonnes consist of basmati rice, with the remainder being white and parboiled rice. The exporters’ council believes that maintained governmental restrictions would impact export volumes for this year. At the same time, the suppliers face dilemmas due to diminished demand from exporters.
The Bharatiya Kisan Sangh disapproves of the timing of the export ban declaration, asserting it sends a pessimistic message to farmers during the current planting season.
The IREF, just 100 days old and with 4,000 members, reported successfully resolving the issue with the Government by clearing 90,000 tonnes of white rice in transit to export destinations following the ban announcement. These shipments were previously stranded at various ports, as per officials.
