In a strategic move to streamline rice exports, the government is considering setting a fixed export duty of $100 per tonne on parboiled rice. This proposal aims to address issues of under-invoicing by exporters who currently face a 20% levy on this variety of rice.
A committee, named the Rice Federation Consulting Committee, has been established under the commerce ministry to tackle these challenges and oversee rice export matters.
The 20% export duty on parboiled rice, initially imposed on August 25 of last year to maintain sufficient domestic stock and stabilize prices, was set to last until October 16, 2023. This duty was extended until March 31 of this year and remains in effect. Industry insiders have noted that some exporters engage in under-invoicing to reduce their export duty liabilities.
The proposed fixed duty of $100 per tonne has sparked mixed reactions among rice exporters. While some view it as a necessary step towards ensuring compliance and transparency, others express concern over the potential impact on their profitability.
The government continues to seek a balance between maintaining domestic stock levels and supporting the export market, striving to create a fair and efficient trade environment.
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