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Informist, Wednesday, Jan. 7, 2026

 

NEW DELHI – The Indian Rice Exporters' Federation has requested Finance Minister Nirmala Sitharaman to announce tax and policy incentives in the Union Budget for 2026-27 (Apr-Mar) to strengthen rice export competitiveness and promote sustainable paddy production. India accounts for roughly 40% of the global rice trade.

 

The proposal includes tax incentives for sustainable rice production, interest subvention on export credit, targeted freight facilitation, and a one-time waiver of retrospective export-duty claims in the upcoming Budget. The federation said such fiscal incentives will directly reduce working capital costs for exporters and encourage investments across the rice value chain. 

 

To reduce logistics costs, the federation has requested reimbursement of 3% of eligible domestic freight for export-bound rice movements from clusters to ports, with simplified digital claims. To improve liquidity, the body also recommended a 4% interest subvention on pre- and post-shipment rupee export credit. 

 

The body has also requested a one-time waiver of export duty claims to provide immediate relief to the sector. "Following the imposition of export duty (e.g., 20%) on certain rice varieties, inconsistent interpretation of the duty base and calculation methodology across field authorities and exporters led to inadvertent discrepancies. This resulted in large, retrospective duty demands and prolonged disputes, despite exports being undertaken in good faith and without any undue gain," the federation said.

 

To increase farmers' income and reduce pressure on the government procurement, the federation has urged the government to incentivise high-value rice cultivation, including GI-tagged, organic, and specialty non-basmati rice. 

 

The industry body has requested additional tax deductions or accelerated depreciation on capital expenditures incurred on certified water-saving and low-emission practices such as direct-seeded rice, laser land levelling, and energy-efficient milling and parboiling. "These measures would improve resource efficiency and ESG (environmental, social and governance) readiness; strengthen long-term resilience and access to premium markets," the recommendations read. 

 

In 2024-25 (Apr-Mar), India produced 142.0 million tonnes and exported 6.0 million tonnes of basmati and 14.1 million tonnes of non-basmati rice varieties, the federation said. End

 

Reported by Afra Abubacker

Edited by Akul Nishant Akhoury

 

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