Rice body seeks GST reduction, reforms to enhance export competitiveness
This story was originally published at 12:30 IST on 24 January 2025
Register to read our real-time news.Informist, Friday, Jan. 24, 2025
MUMBAI – The Indian Rice Exporters Federation has urged for consideration in the upcoming Budget a reduction in the goods and services tax and operational costs for rice exporters in a bid to enhance profitability and ease the financial burden on the industry and eventually consumers, it said in a release. The federation promotes the interests of rice exporters in India and plays an important role in the country's rice sector, contributing to trade, advocacy, and market growth.
The federation also recommended the establishment of guidelines on input tax credit for rice exporters to ensure seamless claim processes and to mitigate cash flow challenges. The rice association also asked for a reduction in GST on branded rice exports from 5% to nil to improve competitiveness and boost global sales.
The federation emphasised that the current Remission of Duties and Taxes on Exported Products, or RoDTEP, rates fail to sufficiently offset embedded taxes and duties. It proposed raising RoDTEP rates for rice exports to a minimum of 3% to address hidden costs such as electricity duties, mandi fees, and state levies, which hinder exporters' ability to compete globally.
It also asked for the introduction of interest subvention programmes to provide affordable financing options for exporters in a bid to further reduce the cost of capital and encourage investment in modernising facilities. Further, it recommended the enhancement of export credit guarantee flexibility operations to ensure time-bound settlement of claims to bolster exporter confidence.
To align with global market demands, the federation stressed adopting eco-friendly farming practises and sustainable technologies. These initiatives would not only enhance India's reputation as a rice exporter, but also support environmental conservation, it said. "We are confident that these measures, if implemented, will significantly strengthen the agricultural export ecosystem, benefiting both farmers and exporters alike," said the federation whose recommendations aim to address industry challenges while paving the way for sustainable growth of India's rice export sector.
Reported by Anjali Lavania
Edited by Namrata Rao
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
