Demand to lift ban on rice export due to excess buffer stock

Mumbai: With Food Corporation of India's (FCI) rice stock reaching three and a half times the buffer stock norm, rice exporters have demanded lifting of the ban on export of white rice and broken rice. Other countries are gaining ground in India's export markets.

Apart from this, a change in the duty structure on boiled rice has also been proposed. Sources in the Rice Exporters Association said that this proposal was put forward in a meeting with central government officials.

The government has been suggested to levy a fixed amount of duty on parboiled rice instead of the present duty of 20 per cent of the value. This suggestion has been given to avoid devaluation.

To maintain domestic supplies, the Indian government has banned the export of broken rice in August 2022. In addition, export of non-basmati white rice was halted in July last year and a 20 per cent duty was imposed on parboiled rice exports in August.

FCI currently has a buffer stock of 50.5 million tonnes of rice against the buffer stock norm of 13.5 million tonnes. Moreover, rice production is also expected to be higher following the forecast of a good monsoon for the current year.

Sources also claimed that exporters from Vietnam, Thailand and Myanmar are making inroads into India's export markets.