Rice exporters on Tuesday urged finance minister Nirmala Sitharaman to provide 4% interest subsidy on export credit, 3% support for road and rail freight, and timely disbursal under the duty remission schemes in the forthcoming 2026-27 budget.
This according to Indian Rice Exporter’s Federation (IREF) would reduce financing costs, ease cash flow and improve price competitiveness. “These measures will directly lower exporters’ costs, incentivise sustainability, and encourage scaling of value-added shipments,” Prem Garg, president, IREF said in a representation to the finance minister Sitharaman.
The exporters also suggested incentives for production and marketing of high-value geographical indication approved rice varieties. IREF has suggested income-tax incentives for sustainable rice value chain development.
What did Prem Garg say?
“Rice exports remain a strategic economic asset supporting farm incomes, rural employment and the external sector,” Garg said, adding that sustained leadership in the staple food commodity strengthens India’s economic resilience and diplomatic leverage.
India has been the biggest rice – basmati and non-basmati – exporter in the world in the last decade and it has a market share of around 35% to 40% in rice trade.
Volume of rice shipment
In FY25, Overall shipment of rice was 19.86 million tonne during FY25, which was valued at a record $ 12.47 billion.
During April-November 2024-25, the country exported rice valued at $ 7.29 billion.
India exports both aromatic and long grain basmati and non-basmati varieties to over 140 countries, across Asia, the middle east, Europe, and the U S. In several countries it faces competition from rice exporting countries including Pakistan and Thailand.