Parboiled rice may attract export levy

livemint.com:

NEW DELHI : India may extend duty restrictions to exports of non-basmati parboiled rice and impose a minimum export price (MEP) for the basmati variety depending on the situation, following the ban on white rice exports in response to escalating prices of the staple. The government is exploring to 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 domestic 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 move being explored 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." In the first three months of the current fiscal, India, which accounts for about 80% of basmati rice trade globally, exported the premium variety to 75 countries. In nine of these countries, the price was less than $1,000 per tonne, constituting 4% of the total export quantity, the official said.