Non-basmati rice has been made eligible for MEIS benefits at the rate of 5% for exports made between November 26 and March 25, 2019, the Directorate General Foreign Trade said in a notification.
The government has allowed 5% MEIS benefit on export of non-basmati rice during the next four months after shipments of the commodity declined 13% during first half of the current fiscal. The move may help exporters boost shipments.
Non-basmati rice has been made eligible for MEIS benefits at the rate of 5% for exports made between November 26 and March 25, 2019, the Directorate General Foreign Trade said in a notification. The Merchandise Exports from India Scheme (MEIS) was started in 2015 under which exporters get 2-5% (of FOB value) of their exports as duty credit scrip. The value on the scrip can be adjusted against payment of the import duty and the GST.
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“This has come at an opportune time. Hopefully, the decline in export of non-basmati rice may be recovered in the next four months,” said BV Krishna Rao, president of Kakinada-based Rice Exporters Association. However, the decline in shipments to Bangladesh may not see an immediate jump due to the MEIS, he said.
India exported 37.23 lakh tonne of non-basmati rice (worth Rs 10,426 crore) during April-September this year, compared with 42.87 lakh tonne in the corresponding period last year, according to the official data.
Total non-basmati exports in 2017-18 were 86.5 lakh tonne valued at Rs 22,968 crore, of which 20.28 lakh tonne was shipped to Bangladesh. The non-basmati rice export to the neighbouring country stood at only 3.40 lakh tonne in the first half of FY19.
Earlier this week, FE had reported rice exports from India might decline for the first time in three years in 2018-19 owing to a 13% hike in minimum support price for paddy (kharif 2018) and a drop in demand from Bangladesh and several other key markets. While a decline is most likely in volume terms, exports could at best see a flat growth in value terms, trade sources had said.