Farmers, millers miffed with 20% export duty on non-basmati rice

Nitish Sharma

Ambala, September 9

The Centre’s decision to impose 20 per cent export duty on non-basmati rice, except for parboiled variety, to ensure ample domestic supply, and a ban on broken rice hasn’t gone down well with the farmers and rice millers.

MOVE TO BENEFIT BIG PLAYERS

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The decision will help some big players only as they will procure the paddy at cheaper rates and later sell it on remunerative prices when the export duty will be withdrawn. The union will call a meeting to discuss the issue soon. Rakesh Bains, BKU (Charuni) Spokesman

Criticising the Centre for the export duty, Bhartiya Kisan Union (Charuni) chief Gurnam Singh said: “The farmers have faced financial losses due to the poor yield of wheat, mustard and potato this year. Now, we were expecting that the paddy will fetch good prices, but the government decision will put pressure and the non-basmati paddy prices may fall by Rs 400-Rs 500 a quintal.”

Jewel Singla, chairman, Haryana Rice Millers and Dealers Association, has apprehensions that the decision may disturb the business. He said: “Higher export duty will discourage the buyers. The exports will decrease and it will also have an impact on the local market. The ban on broken rice will also hit the dealers hard. It will disturb the business. The prices of broken parmal rice was Rs 2,151 a quintal and it has dropped by Rs 100 already, and it may fall further. The government has a surplus stock. We will soon meet Chief Minister Manohar Lal Khattar and request him to raise the issue with the Centre.”

Meanwhile, Vijay Setia, former president of the All India Rice Exporters Association, termed the decision as a welcome step. He said: “It is a good decision amid the fall in area under paddy cultivation. Broken rice has good consumption in the local market. To maintain the supply chain and ensure that the prices in the local market don’t increase, the government has taken the decision in the interest of the people of the country.”

“Indian rice was being exported at a low price compared to Thailand and Vietnam. The 20 per cent duty will reduce the non-basmati shipments by 3-4 million tonnes but the realisation from the exports will remain the same. Moreover, the duty will be spent on the farm sector only. There are 35 varieties that are notified as basmati, on which there is no ban,” he added.