The Centre on Thursday levied 20 per cent export obligation on numerous grades of rice together with husked (brown) rice and semi-milled or wholly-milled rice (apart from parboiled and basmati rice), a transfer that will ease the grain’s value in home market however gas international meals inflation.
According to a notification issued by the Finance Ministry, 20 per cent export obligation has been levied on three grades of rice — rice in husk (paddy or tough); husked (brown) rice; and semi-milled or wholly-milled rice, whether or not or not polished or glazed (apart from parboiled rice and basmati rice). “… Whereas, the Central Government is satisfied that export duty should be levied on certain articles and that circumstances exist which render it necessary to take immediate action,” it learn, including, “This notification shall come into force on the 09th of September, 2022.”
The transfer comes at a time when 5.6 per cent lesser space has been reported underneath rice crop within the ongoing kharif season. As per the Agriculture Ministry, as on September 2, about 383.99 lakh hectare (ha) space was reported underneath rice, i.e. 5.6 per cent, or 22.90 lakh ha, lower than the corresponding interval of final yr (406.89 lakh ha). The lesser space protection underneath rice is reported from a number of states together with Jharkhand, Madhya Pradesh, West Bengal, Chhattisgarh, Uttar Pradesh, Bihar, Odisha, Andhra Pradesh, Assam, Meghalaya, Punjab, Jammu & Kashmir, Mizoram, Sikkim and Tripura.
While the realm underneath rice has been reported decrease in a number of states amid uneven monsoon in these states, the Centre has set the kharif rice procurement goal at 518 lakh metric tonnes (LMT) in the course of the upcoming kharif advertising and marketing season (KMS) 2022-23 — marginally greater than the precise procurement of 509.82 LMT over the past KMS 2021-22 (Kharif crop). This is critical in view of decrease wheat output and procurement in the course of the rabi season 2022.
India implements one of many greatest meals safety programmes for which it requires a big amount of foodgrains.
During the primary 4 months (April-July) of the present monetary yr, India’s rice exports stood at $3.652 billion, with Iran, China, Saudi Arabia, United Arab Emirates and Benin being its high locations. In all, India has exported rice to over 100 international locations within the present fiscal.
The transfer to impose export obligation on rice could quiet down home costs. As per knowledge accessible with the Consumer Affairs Ministry, common all-India retail value of rice was reported at Rs 37.58 per kg on September 8, which is 5.71 per cent greater than a yr in the past (Rs 35.55 per kg). The common wholesale value of rice has recorded an excellent greater improve (7.52 per cent over the rice value a yr in the past).
The export obligation on numerous grades of rice comes at a time when China has emerged as the highest purchaser of Indian rice in the course of the pandemic. An evaluation of commerce knowledge confirmed that the neighbouring nation imported 16.34 LMT, or 7.7 per cent of India’s whole rice export of 212.10 LMT, throughout 2021-22.
It additionally factors out that of China’s whole rice import from India final fiscal, 97 per cent — or 15.76 LMT — was damaged rice, which has seen a spike in demand from the neighbour. In truth, China is now the highest purchaser of Indian damaged rice, which has been exported earlier largely to African international locations.
During 2021-22, India’s whole rice exports (each basmati and non-basmati) stood at 212.10 LMT, i.e. 19.30 per cent greater than 177.79 LMT throughout 2020-21. However, in the identical interval, rice exports to China jumped by 392.20 per cent — from 3.31 LMT to 16.34 LMT.
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Of India’s whole rice exports of 212.10 LMT throughout FY22, basmati rice accounted for 39.48 LMT, which was 14.73 per cent decrease than 46.30 LMT throughout 2020-21. Iran (9.98 LMT), Saudi Arabia (6.74 LMT) and Iraq (4.86 LMT) have been the highest three patrons of Indian basmati rice within the final monetary yr, whereas China (1,076 metric tonnes) stood at 66th place within the listing of over 150 international locations.
Non-basmati rice accounts for the lion’s share within the basket of Indian rice exports. During 2021-22, export of rice (apart from basmati) stood at 172.62 LMT, which was 31.27 per cent greater than 131.49 LMT in FY21. This non-basmati rice class comprised 6 sub-categories — rice in husk of seed high quality; different rice in husk; husked (brown) rice; rice parboiled; rice excptg parboiled (excl basmati Rice); and damaged rice. Of these six classes, the utmost export of rice was recorded within the rice parboiled class (74.52 LMT). adopted by rice excptg parboiled (excl basmati Rice) class (52.48 LMT) and damaged rice (38.64 LMT).
While Bangladesh, Benin, Cote d’Ivoire, Togo, Guinea, Somalia, Liberia, Sri Lanka, Djibouti and South Africa have been top-10 patrons of Indian parboiled rice throughout 2021-22, China emerged the highest purchaser of damaged rice.
