Impact of Export Duty on Indian Rice Trade
Exports of Indian non-basmati rice can exceed all previous expectations and record to reach a record new height of data despite the imposed 20% export duty and ban on the shipment of broken rice as per Indian 100% broken rice traders in India. Many African countries which are major importers of broken rice from India are sending enquiries to purchase white and parboiled non-basmati rice as these are comparatively cheaper to export from Vietnam, Thailand, and Pakistan.
This data reveals that despite increased export duty, rice import from India is beneficial and economical for various countries. As per data goes, in the last fiscal year, India has exported more than 17 million tonnes of non-basmati rice. Rice Exporters Association said Senegal have approached to buy parboiled rice from India. The trend of broken rice imports is changing to white and parboiled rice.
India accounts for around 40% of global rice trade and export to more than 150 countries. Out of 21 million tonnes of rice shipment, major proportion is of non-basmati rice accounting for 75% while long grain basmati rice accounts for 25% export. Bangladesh, Benin, South Africa, and Nepal are among top five export destinations of Indian rice. Indian non-basmati rice traders has seen a positive surge in demand of 100% broken rice due to its quality, price and major use for animal feed.
Government Response to Rice Supply and Demand
As per agricultural department forecast, less rain in season has occurred a minor fall in overall rice production but increasing demand has make the government to put a cap on exports of certain varieties of non-basmati rice. Kharif is the main cropping season in India for rice and it depends on monsoon rains. As per data from the Ministry of Agriculture, about 52 percent of India’s gross cropped area has assured irrigation whereas 48% has to depend on monsoon rain. Even in irrigated areas, rains are needed to reduce dependence on electricity and diesel. So, if there is a serious deficiency in rainfall, the crop production and its costs of cultivation are bound to be adversely impacted.
The ban has also been lifted on organic broken rice after easing domestic supplies and moderated price. The ban was imposed to increase availability of rice in domestic markets. The government aims to create a necessary ecosystem of exports along with the collaboration with key stakeholders in agri-exports value chain.
The international market of rice has gone up and it will go further. With introduction of the governing policy, the government has set a list of essential agro-commodities.
Amoli International plays a vital role to meet desired buyers and exporters to meet the demand of their rice variety. We trade all varieties of basmati and non-basmati rice with trusted chain of suppliers. India export parameters for premium basmati rice is predicted to jump over the previous year by 15% with key buyers in Middle east surging.
Some of the well-known basmati rice varieties are 1121 basmati steam rice, Sella Basmati rice. After the Ukraine Conflict and issues, each buyer is frightened and want to pile up the stock to avoid any sudden supply disruption. Following the trend, Indian farmers are rethinking the cultivation of organic rice and increase in production which can lead to higher returns from fulfilling orders of bulk exports of rice varieties for human consumption as well as animal feed stock.
Conclusion
Changing global situation and Policies of Government can lead India with increased the export of rice year after year. With a positive industry approach and the best quality rice, register yourself with us an Indian rice exporter.
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