Rice exporters have demanded that the ban on the export of white rice and broken rice be lifted, as well as changes to the duty structure of parboiled rice, as stocks with the Food Corporation of India (FCI) have risen to three-and-a-half times the required buffer.
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Demand To Lift Rice Export Restrictions
The requests were made by a group of rice exporters during a meeting with officials from the central government on Tuesday.
Rice Exporters Association president Rajiv Kumar said, “We have requested the central government to lift the ban on export of white rice and non-basmati rice. We have also requested to levy a fixed amount of duty on the quantity of parboiled rice exported, instead of the existing flat 20% duty on the value of exports, to avoid undervaluing.”
Reasons For Demand
Since the previous year, there has been double-digit inflation in the retail and wholesale prices of rice. In August 2022, India, the world's largest rice exporter, prohibited the export of broken rice in order to guarantee sufficient
local supplies. Subsequent measures included the prohibition of non-basmati white rice exports in July 2023, a 20% export tax on parboiled rice in August 2023, and limitations on basmati rice through the imposition of a minimum export price.
The FCI currently has a rice stock of 50.5 MT, compared to the buffer norm of 13.5 MT. Kumar mentioned, “With the output of the kharif crop of this year expected to be good due to the forecast of a good monsoon, it would be a challenge to find space for the kharif paddy procurement.”
Rice exporters reported that competing countries such as Myanmar, Thailand, and Vietnam were making inroads into the overseas markets established by Indian exporters.
Vijay Setia, a veteran expert on the rice industry said, “The export duty on par-boiled rice should be a fixed amount to rule out any variation in the duties paid at different ports by different entities.”
According to Kumar, the rice industry is also concerned about the unemployment caused by the export ban.
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