To promote the export of rice, the central government has abolished the export duty on parboiled rice. A decision to this effect was taken by the high level ministerial panel last week. Now a notification has also been issued in this regard.
To promote the export of rice, the export duty on parboiled rice was reduced from 20 % to 10 % last month, but in view of the fall in the price of rice in the international market and the sufficient stock of rice already present in the country, the government has completely abolished the export duty on parboiled rice.
The Indian Rice Exporters Federation (IREF) met Union Minister Piyush Goyal and demanded the abolition of the export duty on rice. The central government constituted a high level ministerial panel. This ministerial panel decided to abolish the 10 % export duty on parboiled rice. IREF says that India already has sufficient stock of rice. Similarly, there has been a bumper production of rice in this Kharif season, due to which there is a possibility of a tremendous increase in the country’s rice reserves soon.
IREF told Union Minister Piyush Goyal that at present there is a huge stock of 235 lakh tonnes of rice in the country under the Open Market Sale Scheme (OMSS). Apart from this, 275 lakh tonnes of additional rice is expected to come into the market this season as well. In this way, a huge stock of rice will be collected in the country.
In such a situation, rice producing farmers and rice traders can get relief only when they get a chance to work freely for export of rice in the international market. In the memorandum given by IREF to Union Minister Piyush Goyal, it was also said that the price of rice in the international market has fallen continuously.
On the other hand, due to export duty, Indian rice has become comparatively expensive in the international market. Success on the export front can only be achieved by offering rice at a competitive price in the international market. Keeping these things in mind, IREF had demanded the central government to abolish the 10 % export duty. Market experts say that by abolishing the export duty on parboiled rice, the price of Indian rice in the international market will fall, which will increase the export of rice.
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