Withdrawing a blanket ban on abroad shipments of non-basmati white rice, the federal government on Saturday imposed a flooring value of $490 per tonne and exempted the commodity from export responsibility.
Exports of non-basmati white rice have been banned since July 20, 2023 to spice up home provide.
‘The export coverage for non-basmati white rice (semi-milled or wholly milled rice, whether or not or not polished or gazed) is amended from prohibited to free, topic to minimal export value of $490 per tonne with fast impact and till additional orders,’ the directorate basic of overseas commerce stated in a notification.
The measures got here at a time when the nation has ample inventory of rice at authorities godowns and retail costs are additionally beneath management.
The federal government has exempted non-basmati white rice from export responsibility, whereas decreasing the levy on parboiled rice to 10%.
The responsibility lower got here inside a fortnight of the federal government’s choice to take away the minimal export value on basmati rice.
In a notification issued on Friday, the income division beneath the finance ministry stated it has additionally decreased export responsibility on husked (brown rice), and rice within the type of husk (paddy or tough) to 10%.
The export responsibility on these kinds of rice in addition to non-basmati white rice was 20% to date.
These responsibility adjustments are efficient from September 27, 2024, the notification stated.
Earlier this month, the federal government had scrapped the minimal export value for basmati rice to spice up outbound shipments and improve farmers’ revenue.
The nation has exported non-basmati white rice value USD 189 million throughout April-July this fiscal. It was USD 852.52 million in 2023-24.
Although there was a ban on the exports, the federal government was permitting the shipments to pleasant nations like Maldives, Mauritius, the UAE and African international locations.
The export permission was granted by the federal government of India to different international locations to satisfy their meals safety wants and primarily based on the request of their governments.
This number of the rice is extensively consumed in India and it additionally has demand in international markets, significantly in nations which have giant Indian diaspora.
In 2023-24, the nation exported the commodity to 17 nations — Bhutan (79,000 metric tonnes), Mauritius (14,000 MT), Singapore (50,000 MT), UAE (75,000 MT), Nepal (95,000 MT), Cameroon (1,90,000 MT), Cote d’ Ivore (1,42,000 MT), Guinea (1,42,000 MT), and Malaysia (1,70,000 MT).
The opposite international locations are Philippines (2,95,000 MT), Seychelles (800 MT), Comoros (20,000 MT), Madagascar (50,000 MT), Equatorial Guinea (10,000 MT), Egypt (60,000 MT), Kenya (1,00,000 MT), and Tanzania (30,000 MT).
Sure member international locations of the World Commerce Organisation (WTO), together with the US, have earlier raised issues over the prohibition on the exports.
India has rejected their issues stating that the export ban on rice is a regulation quite than a restriction and is essential for securing the meals safety of the nation’s 1.4 billion folks.
The U.S. had urged India to carry this export ban with fast impact.
These international locations had argued that such measures had a detrimental influence on nations that are closely reliant on imports of those agri commodities, significantly throughout crises.
The continued battle between Russia and Ukraine is amongst one of many components which have disrupted the foodgrain provide chain.
The federal government earlier this month additionally scrapped a minimal value threshold for exports of onion because it seemed to cross on the good thing about worldwide glut to Indian farmers.
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