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Non-Basmati Rice Traders Seek Ban Removal After Basmati Export Duty Lifted

Exporters argue that lifting restrictions on non-Basmati rice, particularly white variety, would lead to a surge in exports and benefit domestic rice trade.

Neelam Karale

Pune: In a major relief for Basmati rice exporters, the central government has announced that no export duties will be imposed on the export of Basmati rice.

This move is expected to significantly boost the international trade of India’s prized Basmati variety, which has been a key source of foreign exchange.

The announcement was made by Union Commerce Minister Piyush Goyal, who confirmed that Basmati exports would not face any additional financial burden.

The decision comes at a crucial time when Basmati production has increased, offering better market prices to farmers.

According to trade figures, India exported 4.56 million tons of Basmati rice worth $4.8 billion during the financial year 2022-23. This figure saw a rise in 2023-24, with exports reaching 4.8 million tons valued at $5.9 billion. With the removal of export duties, further growth in Basmati exports is anticipated.

Rajesh Shah, a prominent Basmati exporter from Market Yard, hailed the government's decision as a "positive step" and said that it would "bring more foreign currency into the country."

He further explained that while the export cap had been eased in October last year when the minimum export price was reduced from $1,200 to $950 per ton, the removal of export duties would provide much-needed relief to traders and exporters.

Despite this positive development for Basmati rice, non-Basmati rice exporters have expressed concern over the continued restrictions on their trade.

The ban on non-Basmati rice exports, in place since 2011, has limited the growth potential for this segment.

Although certain types of non-Basmati rice can be exported with a 20% duty, traders are pressing for a complete removal of this ban. Exporters argue that lifting the restrictions on non-Basmati rice, particularly the white variety, would lead to a surge in exports and benefit the domestic rice trade.

Shah echoed the sentiment of many non-Basmati traders, stating, “We hope the government extends similar support to non-Basmati rice exports. Lifting the ban would not only boost exports but also enhance the overall rice trade within the country.”

The government’s decision is expected to improve market conditions for Basmati producers and exporters, while attention now shifts to whether similar measures will be adopted for non-Basmati rice, offering broader opportunities for India's rice export market.

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