Indian Rice Exporters Call on Government to Replace Duty, Seek Minimum Export Price
Indian rice exporters are urging the government to implement changes to existing export policies in order to eliminate ambiguity and invoicing issues within the rice trade. The Indian Rice Exporters Federation (IREF) has specifically requested that the current 20% export duty on parboiled rice be replaced with a fixed export duty of USD 80 per tonne. Additionally, the federation is seeking a dialogue with the government to reconsider the ban on white rice exports.
The IREF is also requesting the government to issue a notification proposing a minimum export price of USD 850 per tonne for basmati rice, a reduction from the current rate of USD 1,200 per tonne. These measures have been prompted by concerns over rice stock availability and food inflation control. The export restrictions have inadvertently led to a 30% increase in rice prices in the international market, which has benefited competing countries such as Pakistan and Thailand.
According to Sanjeev Ahuja, the Director General of the IREF, India is the largest rice exporter globally, accounting for around 46% of total rice exports, equivalent to approximately 22 million tonnes per year. However, only 6.9 million tonnes have been exported thus far. Out of the total exports, 5 million tonnes constitute basmati rice, with the remainder being white and parboiled rice. The federation warns that if the government continues with the current export restrictions, this year’s export volumes will be significantly impacted.
In addition, the IREF highlights the pressure faced by Indian farmers due to reduced demand from exporters. The Bharatiya Kisan Sangh, a farmer organization, has criticized the timing of the export ban announcement, claiming it sends a negative signal during the current planting season. Despite these challenges, the IREF managed to resolve an issue with the government that enabled the clearance of 90,000 tonnes of white rice, which were previously stuck at various ports awaiting export.
Overall, the IREF, in its early stages with 4,000 members, is actively engaging with the government to address the concerns of rice exporters and ensure a smoother and more predictable export environment. The federation seeks a favorable response from the government to ease export restrictions, support farmers, and maintain the competitiveness of Indian rice in the global market.