A day after removing the export tax on husked rice (paddy or coarse), reduced (brown) rice and parboiled rice from 10 percent to cash, the Center on Wednesday “immediately” increased the Minimum Export Price to $490 (Rs 41,193.25). ) per tonne on shipments of non-basmati white rice.
According to its plan, the Directorate General of Foreign Trade (DGFT) said, “The Minimum Export Value (MEP) requirement for export of Non-Basmati White Rice under HS code 10063090 has been removed with immediate effect. This is issued with the consent of the competent authority.”
In a separate development, the Ministry of Finance has issued a notification, reducing the export tax on three categories of rice exports from the existing 10 percent to zero. “This notification will come into effect immediately,” said a notification issued by the Ministry of Finance on Tuesday.
This move will boost rice exports. It comes days after the government lifted the ban on the sale of basmati white rice. On September 28, the Center had lifted the ban but imposed a minimum export price of $490 per tonne.
Last month, the government removed the 20% export tax on non-basmati rice, and halved the export tax on three other categories of rice. The duty on ‘husked rice (paddy or coarse)’, ‘husked (brown) rice’, and ‘parboiled rice’ was reduced from 20 percent to 10 percent. Now, it has been reduced to nothing.