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Rice exporters have called on the government to ease restrictions on shipments of non-Basmati rice by withdrawing the 20 percent export duty on white (raw) rice and allowing shipments of one million tonnes (mt) of broken rice. However, the Center is unlikely to make a decision before March as the Food Corporation of India (FCI) assesses the procurement of kharif-grown paddy.
In a letter to the food ministry, which had proposed restrictions on exports last year to ensure domestic availability and curb inflation. The Rice Exporters Association (TREA) said exporters are facing tough competition from Myanmar, Vietnam, Thailand, and Pakistan due to 20 percent export duty.
Exporters said ever since the duty was imposed, their margins have shrunk, though the rice trade is done at a “thin margin”.
Upbeat wheat outlook
“The issue (export duty) should be relooked at now as the twin objectives of keeping inflation under check and taking procurement to a comfortable level have been achieved,” said B V Krishna Rao, President of TREA. He said as the wheat crop outlook is good and the pressure on rice has eased as the Government reallocated more rice in place of wheat under the public distribution system.
On the issue of the total ban on fully broken rice export, Rao said TREA has suggested the allocation of one mt as there is a demand from Senegal and Indonesia for human consumption. This will help farmers to receive better rates for their paddy as other industry users such as poultry or ethanol might not pay adequate rates, he said.
The Directorate-General of Foreign Trade on September 8 issued a notification prohibiting the export of broken rice (parboiled and basmati exempted). However, it allowed the consignments for which deals had been signed to be exported under specific conditions between September 9 and 15. It recently extended the last date to September 30 for those under transitional arrangements. The Centre imposed a 20 percent duty on the export of all varieties of rice, except basmati and parboiled rice.
The country exported 115.69 lt of non-basmati rice worth $4.11 billion (₹ 32,594 crore) in April-November against 109.49 lt worth $3.93 billion in the year-ago period.
Source:
Online/GFMM
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