According to a notification by the revenue department, an export duty of 20% has been imposed on ‘husked rice (paddy or coarse)’ and ‘husked (brown) rice’. , Photo credit: Sandeep Saxena
The Center on Thursday imposed an export duty of 20% on rice, brown rice and semi-milled as well as fully milled rice, effective September 9, to boost domestic supplies.
According to a notification by the revenue department, an export duty of 20% has been imposed on ‘husked rice (paddy or rough)’ and ‘husked (brown) rice’.
Notification issued by the Center on September 8, 2022 announcing an export duty of 20% on rice, brown rice and semi-milled as well as fully milled rice. Photo: Special Arrangement
The development comes in the wake of concerns over low paddy sowing by farmers this kharif season amid an uneven monsoon in parts of the country, which has raised inflation expectations and pushed up retail prices for rice in recent weeks.
The Central Board of Indirect Taxes and Customs further stated that export of ‘semi-milled or fully milled rice, whether polished or glazed (other than parboiled rice and basmati rice)’ would also attract a customs duty of 20 per cent. Will do
The notification states that the export duty will be applicable from September 9. The area under paddy has declined by 5.62% to 383.99 lakh hectare so far in the current kharif season due to poor rains in some states. Data released by the Ministry of Agriculture
India, the world’s second largest rice producer after China, accounts for 40% of global trade.
The country exported 21.2 million tonnes of rice in the 2021-22 financial year, of which 3.94 million tonnes was basmati rice. It exported non-basmati rice worth $6.11 billion during the same period, according to official data.
The country exports non-basmati rice to over 150 countries in 2021-22.
Welcoming the export duty, Vijay Setia, former president of the All India Rice Exporters Association, said Indian rice was being exported at “very low prices”. The export duty will reduce non-basmati rice shipments by 2-3 million tonnes, but export earnings will remain the same due to the 20% duty.
“It is a good decision considering the decline in paddy area,” said Mr. Setia.
Nathi Ram Gupta, the current president of the association, said exports of raw rice from the southern parts of the country would be affected, but shipments of parboiled rice could increase.
Paddy is the main kharif crop, sowing of which begins in June with the onset of the south-west monsoon and harvesting begins in October.
Rice production in the last crop year reached a record 130.29 million tonnes as against 124.37 million tonnes in 2020-21.
The government has already banned the export of wheat.