In a bid to simplify rice trade and eliminate uncertainty, rice exporters in India are urging the government to replace the current 20 percent duty on parboiled rice exports with a fixed export duty of USD 80 per tonne. The Indian Rice Exporters Federation (IREF) is also requesting the government to reconsider the ban on white rice exports, which was put in place in July. Furthermore, they are suggesting a decrease in the minimum export price for basmati rice to USD 850 per tonne to support the interests of both the export market and farmers.

The Indian government recently extended the 20 percent export duty on parboiled rice until March 24. IREF's National President, Prem Garg, conveyed their plea, saying, "We request the government to replace the 20 percent export duty with a fixed USD 80 per tonne export duty. This will eliminate ambiguity and invoicing issues in rice trade." He further emphasised the need for a dialogue with the government to reconsider the ban on white rice.

IREF has also urged the government to release a notification proposing a minimum export price of USD 850 per tonne for basmati rice, contrasting with the current rate of USD 1,200 per tonne.

India's annual non-basmati rice exports are valued at over Rs 50,000 crore. These export restrictions were imposed by the government to maintain an adequate rice stock and control food inflation. However, these restrictions have inadvertently caused a 30 percent increase in international rice prices, benefiting competing rice-exporting countries like Pakistan and Thailand.

Sanjeev Ahuja, who serves as the Director General of IREF, emphasised that India holds the distinction of being the world's primary rice exporter, accounting for approximately 46 percent of the total global rice exports, which typically amount to about 22 million tonnes annually. However, this year has seen only 6.9 million tonnes exported so far, leaving a substantial gap in the market. Among the 22 million tonnes, 5 million tonnes are composed of basmati rice, with the rest being white and parboiled rice. The continuation of these export restrictions by the government could have a detrimental effect on this year's export volumes.

Farmers are already feeling the pressure due to reduced demand from exporters. The Bharatiya Kisan Sangh, a prominent farmers' organisation, has criticised the timing of the export ban, arguing that it sends a negative signal to farmers during the current planting season. As such, resolving these export issues is crucial to ensuring the welfare of Indian rice farmers and the stability of the export market.

IREF, a relatively new organisation, has already achieved some success in addressing export issues with the government. They managed to clear 90,000 tonnes of white rice in transit to export destinations after the ban announcement, effectively removing bottlenecks at various ports.

In conclusion, the Indian Rice Exporters Federation is advocating for policy changes to boost the country's rice exports. They propose a fixed USD 80 per tonne export duty for parboiled rice, a reconsideration of the white rice export ban, and a reduction in the minimum export price for basmati rice to USD 850 per tonne. These measures, if implemented, could help Indian rice exporters and farmers and maintain India's prominent position in the global rice market.

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