Parboiled rice may attract export levy

Govt is also weighing MEP of $1,250 per tonne for basmati rice

- Puja Das

India is considering extending duty restrictions to exports of non-basmati parboiled rice and imposing a minimum export price (MEP) for the basmati variety following the ban on white rice exports in response to escalating prices of the staple.

The government may impose a 20% duty on non-basmati parboiled rice exports, while an MEP of around $1,250 per tonne could be levied on basmati rice, two officials aware of the plan said on condition of anonymity. However, the decision will depend on several factors, including rice prices, they added.

MEP, first implemented on basmati rice in FY11 to deter exports, is typically implemented to contain surging domestic prices because of production disruptions.

The proposed move aims to stop aggressive exports by falsely labelling shipments as those of basmati rice. “The ban on non-basmati white rice exports led people to ship non-basmati white rice containers under basmati HS (harmonised system) code, which is causing aggressive exports and consequently pushing up prices domestically, one of the government officials said. “Exports of basmati rice have been noticed to be more than the production. How can that be possible? Therefore, the government is considering imposing MEP of around $1,250 per tonne.”