New Delhi. The government has banned the export of crumbled rice with an aim to increase domestic availability. It is believed that the government has taken this precautionary step due to less sowing of paddy in the current Kharif season. It is noteworthy that the government has already imposed 20 per cent customs duty on export of non-basmati rice.
According to a notification issued by the Directorate General of Foreign Trade (DGFT) on September 8, 2022, the category of export of piece rice has been revised from ‘free’ to ‘restricted’. This notification has come into effect from September 9, 2022.
The provisions under Foreign Trade Policy 2015-2020 in respect of the Transfer Policy shall not be applicable to this notification. Also, during the period from September 9 to 15, certain consignments of piece rice will be allowed to be exported. As per the notification, only those consignments will be allowed for export during this period whose shipments have started on the ships prior to this notification.
It is noteworthy that earlier the government has imposed an export duty of 20 per cent on non-basmati rice except Usna rice. The area under paddy crop has decreased significantly in the current Kharif season. In such a situation, the government has taken this step to increase the domestic supply. According to the notification issued by the Revenue Department on Thursday, an export duty of 20 per cent has been imposed on rice and brown rice in the form of paddy. This export duty will be applicable from September 9.
Due to less rainfall in some states of the country, the area under paddy has reduced. India is the largest producer of rice after China. India accounts for 40 percent of the global rice trade. India exported 21.2 million tonnes of rice in the 2021-22 fiscal year. It had 39.4 lakh tonnes of basmati rice. According to official figures, exports of non-basmati rice stood at $6.11 billion during this period. India exported non-basmati rice to more than 150 countries of the world during 2021-22.
