Wednesday January 7, 02:26 AM

Source: Indian Express Finance

As rice demand comes down, exporters seek government aid

The rice exporters are grappling with steadily decreasing orders. With exports clocking negative growth in a row and prospects for the coming months appearing bleak, the rice exporters are angling for help from the government. The custom duty of Rs 8,000-per ton was imposed on export of Basmati rice on May 10, 2008 by the Indian government to check inflation and to ensure the domestic rice supply but it has ruffled the entire export trade. International Markets can be lost forever with no advantage to our food security. The additional duty burden and heavy levied taxes have caused slashing down of export of the basmati rice and derailed the predominantly export-oriented Basmati industry s business calculations. Arvinder Pal Singh Manchanda from Amritsar said, After peaking in June, the prices have now started falling sharply. The current situation is there is negligible export of Indian Basmati Rice as the buyers are unwilling to pay the tax. They are moving towards Pakistan for Basmati as their prices are a bargain today by over $400. This duty has made India s Basmati rice, the most expensive rice in the world. Pakistan, our only competitor, fully supported by Pakistan government and with more favorable Rupee exchange rate is poised to take full advantage of irrational policy of the Government of India, he added.