Government May Provide Some Relaxation In The Rice Exports Benefiting The Buyers

The government is considering to provide some ease in the rice exports. The country will have the new crops by October after the harvesting. Thus, the Indian government is under discussion to provide relaxation in exporting to avoid the state of oversupply. Several categories of rice will receive the relaxation benefits. White rice might have fixed duty. Some people from the authority share the details. However, they refused to share their identity due to privacy concerns.

How Will The Relaxation In The Rice Exports Benefit The Buyers In The World?

The relaxation in the rice exports will benefit the buyers from all over the world. The exports had a lot of restrictions on the rice. However, the relaxation in the exports will help in avoiding the situation of oversupply. The season for growing new crops has begun with its peak in July. The farmers will harvest these crops by October. According to the sources, the government can consider a fixed duty on the shipment of white rice. It will also add some tax benefits.

Tricks like the under-invoicing are also used to a large extent. Under this, the price on the invoice is different from the price paid. The government can also reduce the taxes on parboiled rice by up to 20%, which will also help in reducing the under-invoicing of cargoes. The move will majorly benefit the countries of West Africa and the Middle East. These countries are highly dependable on South Asian exports of staple foods.

The countries will save their money on the imports of rice from India. Also, the exporters will have ease one exporting the rise in good quantity. However, the news is not yet public from the government’s side. They have not said anything on the topic. The rice exports also saw a decline in the last year.  Where normal rice exports fell by 21%, the exports of Basmati rice have a bigger fall of 32% in the exports. The move will help revive the falling rate of exports in the market.

The season had less rainfall in the previous month but recovered in July. The Food and Commerce Ministry will soon share details about it. The discussions are going on. The authorities are yet to say anything. The tax and export relaxation will help create a win-win situation for both the exporters and buyers. However, the acreage (the land for practising agricultural activities) grows by 19% to 6 million hectares (14.8 million acres).