As FCI buffer swells, exporters demand lifting of curbs on rice
In Pune, Indian rice exporters have urged the government to lift bans on white and broken rice exports, citing swelling stocks at the Food Corporation of India. They propose fixed-duty adjustments for parboiled rice exports to curb undervaluation. With retail and wholesale rice inflation in double digits, India’s export policies include bans since August 2022 and duties since August 2023. Concerns include competition from Myanmar, Thailand, and Vietnam and potential unemployment due to export restrictions, highlighting industry challenges.
PUNE: Rice exporters have demanded lifting of the ban on the export of white rice and broken rice and sought changes to the duty structure of parboiled rice, as stocks with the Food Corporation of India (FCI) have swelled to threeand-a-half times the buffer requirement.
A delegation of rice exporters made the demands during a meeting with central government officials on Tuesday.
“We have requested the central government to lift the ban on export of white rice and non-basmati rice. We have also requested to levy a fixed amount of duty on the quantity of parboiled rice exported, instead of the existing flat 20% duty on the value of exports, to avoid undervaluing,” Rice Exporters Association president Rajiv Kumar said.
The retail and wholesale inflation in rice has been in double digits since last year. India, the largest exporter of rice, banned export of broken rice in August 2022 to ensure adequate local supplies. This was followed by a ban on export of non-basmati white rice in July 2023, imposition of a 20% export duty on parboiled rice in August 2023 and restrictions on basmati rice by imposing a minimum export price.
The FCI is sitting on a rice stock of 50.5 MT against the buffer norm of 13.5 MT. “With the output of the kharif crop of this year expected to be good due to the forecast of a good monsoon, it would be a challenge to find space for the kharif paddy procurement,” said Kumar.
Rice exporters said competing countries like Myanmar, Thailand and Vietnam were making inroads into the overseas markets developed by Indian exporters.
“The export duty on par-boiled rice should be a fixed amount to rule out any variation in the duties paid at different ports by different entities,” said Vijay Setia, a veteran expert on the rice industry.
The rice industry is also concerned about the unemployment caused by the export ban, said Kumar.
