Boost To Basmati Exports: Government Removes Export Duty
Boost To Basmati Exports: Government Removes Export Duty
The central government has announced the removal of export duty on basmati rice, paving the way for increased exports and better prices for farmers. This decision is expected to benefit basmati farmers, with exports likely to rise significantly.
According to basmati trader Rajesh Shah, “Basmati exporters will not face any obligation or export tax. The government has taken this good decision. Export of basmati will increase foreign exchange.” He highlighted that the previous minimum export price of $1,200 per tonne, later reduced to $150, was still high, leading to a decline in exports.
Traders are now demanding that the government lift the ban on non-basmati rice exports, in place since 2011. Currently, some types of non-basmati rice are exported in small quantities, subject to a 20% tax. Traders argue that lifting the ban will increase export volume and turnover, benefiting the country’s rice industry.
The government is mulling over lifting the ban on non-basmati white rice exports, considering the current surplus stock and increased paddy sowing. Union Minister Piyush Goyal’s announcement to remove export duty on basmati rice has sparked optimism.
Key statistics indicate a significant impact on India’s rice industry:
In 2022-23, basmati exports stood at 45.6 lakh tonnes, valued at $4.8 billion.
In 2023-24, 4.8 lakh tonnes of basmati were exported, valued at $5.9 billion.
Paddy sowing has increased 14% from last year to 2.77 million hectares.
This development is expected to have a significant impact on India’s rice industry, with potential benefits for farmers, traders, and exporters.
