Interest Subsidies for Rice Exporters are Essential

08-Jan-2026 08:53 PM

New Delhi. A leading rice exporters' organization has urged the Union Finance Minister to provide export incentives, interest relief on export credit, and freight assistance in the upcoming Union Budget.

The demands include a 4 percentage point interest subsidy on export credit and a 3 percent subsidy on the transportation of rice by road and rail.

The organization's president stated that such measures would directly reduce exporters' costs and help encourage the continuity of export shipments. It would also ensure more efficient transportation of rice.

These efforts could prove highly effective in enhancing the competitiveness of Indian rice exporters in the international market.

According to the organization, India achieved a remarkable export of 201 lakh tonnes of rice during the financial year 2024-25 (April-March).

India has long been the world's largest exporter of rice, and maintaining this position requires strong government support and incentives for exporters.

India's share in the global rice export market remains at a high level of 40-42 percent. The export sector plays a significant role in the rapid increase in domestic rice production, contributing to a considerable degree of stability in domestic rice prices.

Strategically, rice exports remain a crucial economic pillar, earning billions of rupees in valuable foreign exchange for the country, which strengthens the economy. This helps increase farmers' income and employment opportunities in rural areas and reduces India's trade deficit.