Govt Halves Export Duty on 3 Rice Categories

28 Sep 2024

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हिन्दी

The Union government recently reduced the export duty on three categories of rice from 20% to 10%. 

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  • According to the notification, the reduction applies to rice in the husk (paddy or rough), husked (brown) rice, and parboiled rice.

Different Varieties of Rice

Husk:

  • The outer layer of the rice grain, which is removed during the milling process.
  • It is also known as the rice hull.

Husked (Brown) Rice:

  • Rice grains that have had the husk removed but still retain the bran layer, which is the nutrient-rich layer beneath the husk. 
  • This type of rice is considered a whole grain and offers more nutritional value compared to white rice.

Parboiled Rice: 

  • A type of rice that has been partially cooked before being milled. 
  • This process helps to retain more nutrients, including B vitamins and iron, compared to regular white rice.
  • Parboiled rice also has a firmer texture and is often used in dishes that require a longer cooking time.

White rice

  • Rice grains that have had both the husk and bran layer removed. 
  • While it has a softer texture and cooks quickly, it is less nutritious than brown or parboiled rice.

Basmati rice: 

  • A long-grain variety of rice known for its fragrant aroma and fluffy texture.
  • It can be white or brown.

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Reasons for Reducing Export Duty

  • Surplus Inventories: Stocks of the grain have increased, and a new harvest is expected in the coming weeks.
  • Boosting Exports: Lower export duty will reduce India’s export prices and boost international shipments.
  • Competitive Pressure: This move will force competing nations like Thailand, Vietnam, Pakistan, and Myanmar to reduce their prices.

Rice Production in India

  • Global Trade Share:
    • India is the second-largest rice producer globally, after China.
    • The country is the world’s largest rice exporter, holding a 45% share in the global market.
  • Top Rice Producing States:
    • Leading Producers: West Bengal, Uttar Pradesh, Punjab, and Tamil Nadu.
    • High-Yielding States: Punjab, Tamil Nadu, Haryana, Andhra Pradesh, Telangana, West Bengal, Kerala.

Facts on Rice

  • Staple Food: Rice is a primary food source for most Indians.
  • Kharif Crop: Grows in high temperatures (above 25°C), requires high humidity, and annual rainfall exceeding 100 cm.
  • Export DutyIrrigation: In regions with less rainfall, rice is cultivated using irrigation.
  • Multiple Crops: In states like West Bengal and southern states, farmers grow two to three rice crops annually.
  • Three Crops in West Bengal: ‘Aus,’ ‘Aman,’ and ‘Boro’ rice are cultivated.
  • Cropped Area: Approximately 25% of India’s total cropped area is devoted to rice cultivation.

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Key Issues Related to Rice Export in India

  • Virtual Water Export:
    • Rice cultivation is water-intensive, and large-scale rice exports can worsen water scarcity in already water-stressed regions.
    • This can strain local water resources and negatively impact other crops like wheat and pulses that also rely on irrigation.
  • Food Security Concerns:
    • Over-reliance on rice exports may affect domestic food security, especially as India’s population grows.
    • Excessive exports could lead to higher domestic prices, making rice less affordable for vulnerable populations.
  • Impact on Crop Diversity:
    • Focusing too much on rice cultivation may reduce crop diversity, making the agricultural sector more susceptible to pests, diseases, and climate change.
    • Promoting a diversified agricultural system is essential for long-term food security and resilience.
  • Trade Policies and Subsidies:
    • Government policies such as subsidies and export incentives play a significant role in influencing rice exports.
    • Policies must strike a balance to ensure they don’t negatively impact domestic farmers or consumers while avoiding unfair competition in global markets.

Technique to Improve Rice Cultivation

  • Direct Seeded Rice (DSR):
    • Also known as the ‘broadcasting seed technique,’ DSR is a method that uses less water in paddy cultivation.
    • Seeds are directly sown in the fields, bypassing the traditional nursery setup and transplanting process.

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