Union Budget 2026: Rice Exporters Call for Support to Enhance Sustainability
The Indian Rice Exporters’ Federation has urged the government to announce targeted fiscal and policy support in Union Budget 2026. Citing rising costs and ecological stress, IREF said strategic measures are needed to boost competitiveness, sustainability, and safeguard rural livelihoods and food security.
The Indian Rice Exporters’ Federation (IREF) has urged the Union government to implement targeted fiscal and policy measures in the upcoming Union Budget 2026 to bolster the country’s rice export sector. In a recent communication to Finance Minister Nirmala Sitharaman, the federation emphasized the critical role of rice exports in supporting the economy, rural livelihoods, and global food security. It highlighted several challenges, including ecological stress and rising costs, and called for strategic budgetary support to enhance competitiveness and sustainability in the industry.
Challenges Facing the Rice Export Sector
The IREF has identified multiple challenges that threaten the rice export sector. Among these are ecological stress, particularly groundwater depletion in key paddy-producing regions, high procurement and storage costs, and market volatility. The federation believes that these issues can be addressed through targeted fiscal measures in the Union Budget 2026. They argue that such measures could promote sustainability and improve outcomes for farmers. The federation’s letter outlines the urgent need for the government to take action to mitigate these challenges, which are crucial for the sector’s long-term viability.
Proposed Measures for Sustainability and Growth
To enhance the rice export ecosystem, IREF has proposed a series of priority demands aimed at supporting the entire rice value chain. A significant request is the introduction of tax and investment incentives for farmers who adopt verified water-saving and low-emission farming practices. Techniques such as Alternate Wetting and Drying (AWD), Direct Seeded Rice (DSR), and energy-efficient milling technologies are among the practices encouraged. The federation believes that these initiatives will not only alleviate environmental stress but also boost productivity over time. Additionally, IREF advocates for encouraging farmers to cultivate premium basmati rice and organic, specialty non-basmati varieties, which could lead to higher earnings and reduced reliance on minimum support price systems.
Enhancing Export Competitiveness
To improve the competitiveness of Indian rice exports, IREF has called for interest subvention on export credit to alleviate the financial pressures faced by exporters. The federation also seeks targeted measures to facilitate freight and port operations, which are critical for reducing logistics costs associated with rice shipments. Furthermore, IREF emphasizes the need for the continuation and proper calibration of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for rice, ensuring that embedded taxes are adequately refunded. This is vital for maintaining India’s competitive edge in the global market.
Strengthening Infrastructure and Compliance
Another pressing concern raised by IREF is the need to enhance export finance guarantees and improve compliance-related infrastructure. This includes upgrading testing facilities, traceability systems, and quality assurance mechanisms to safeguard India’s reputation in premium international markets. Dr. Prem Garg, national president of IREF, stated that these measures would significantly lower exporters’ costs, promote sustainability, and encourage the growth of value-added shipments. He stressed that rice should be explicitly included in budgetary initiatives related to export credit, logistics, and trade facilitation. With India accounting for approximately 40 percent of global rice trade, the federation believes the country is well-positioned to meet international demand while ensuring domestic food security.
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Source : Observer Voice
