Basmati rice exempt from 20% export duty imposed by centre

New Delhi, Sept 9 (KNN) Due to the decrease in the area under the paddy crop in the ongoing Kharif season, the government has decided to impose 20 per cent export duty on non-Basmati rice except for parboiled rice.

The area under the paddy crop has been down by 5.62 per cent at 383.99 lakh hectares due to poor rains in some states, as per the latest data released by the agriculture ministry.

According to the notification by the revenue department, an export duty of 20 per cent has been imposed on 'rice in husk (paddy or rough)' and 'husked (brown) rice'. The notification will become operational from September 9.

The export of 'semi-milled or wholly-milled rice, whether or not polished or glazed (other than Parboiled rice and Basmati rice)' will also attract a customs duty of 20 per cent, said Central board of Indirect Taxes & Customs.

All India Rice Exporters Association president, Nathi Ram Gupta said the export of raw rice from southern parts of the country would be impacted, but shipments of parboiled may go up.

Welcoming the export duty, former president of All India Rice Exporters Association Vijay Setia said “Indian rice was being exported at a very low price. The export duty would lead to a reduction in non-Basmati rice shipments by 2-3 million tonnes, but the realisation from the exports would remain the same because of the 20 per cent duty.”

India is world's second-largest rice producer after China. It commands 40 per cent share in the global trade.

The country exported 21.2 million tonnes of rice in the 2021-22 fiscal year, of which 3.94 million tonnes were Basmati rice. It exported non-Basmati rice worth USD 6.11 billion in the same period, as per official data.

Rice production rose to a record 130.29 million tonnes in the last crop year as against 124.37 million tonnes in 2020-21.  (KNN Bureau)