Suggestion to impose export duty on white and broken rice instead of complete ban

29-Jun-2024 03:20 PM

New Delhi. The Central Government had imposed a complete ban on the commercial export of 100 percent broken rice in September 2022 and non-Basmati white (raw) rice in July 2023 with the aim of increasing supply and availability in the domestic sector and curbing the rise in prices.

After this, an export duty of 20 percent was imposed on non-Basmati Sela rice in August 2023. This started affecting the business of exporters badly.

Now the Rice Exporters Association has urged the Center to end the ban on the export of white rice and broken rice and impose a fixed rate of customs duty on it like Sela rice.

Exporters say that its export should be allowed with a fixed customs duty. An export duty of 20 percent is applicable on Sela rice and it is also being shipped normally,

but despite this there has been no unexpected jump in prices. In a letter sent to the Union Food Minister, the association has said that the one-time export duty of 20 percent on sella rice should be removed and a fixed amount of customs duty should be imposed in its place.

It is noteworthy that about 80 percent of the non-basmati rice from the country is exported by the members of this association. According to the association,

the Food Corporation of India (FCI) has about 4 times more rice stock than the minimum mandatory buffer requirements, which can be taken out of the stock.

This huge stock should be used to increase the supply and availability of rice in the domestic market and the surplus stock of white rice with the millers and stockists should be allowed for export shipment.

This will give the government an opportunity to reduce the subsidy burden and also get duty revenue from the export of white rice and broken rice.

This time due to favorable weather and normal monsoon, domestic production of rice is also expected to be better.