Significant delays plague Indian rice exports

This situation arises despite the government’s recent decision to ease export restrictions, including reducing the export duty on parboiled rice from 20% to 10% and eliminating it for white rice. The delays stem from Customs officials’ efforts to ensure that parboiled rice is not exported under the guise of white rice, which could circumvent the 10% export duty. Previously, Customs had held up parboiled rice to prevent illegal shipments of white rice, which had been banned since July 2022.

GAC Shipping reports that the delays are impacting exporters significantly, with nearly ten-day hold-ups and additional costs of $70-80 per tonne. For small and medium-sized exporters, these delays pose financial risks, as they incur charges for storing their consignments at Container Freight Stations (CFS) while awaiting testing results from Customs.

In major cities like Chennai, testing results can take at least three days, while ports like Kakinada and Vizag may experience even longer wait times. This situation exacerbates concerns for exporters who are just beginning to navigate the market after the lifting of the white rice export ban, as additional costs and potential shipment delays threaten the feasibility of their operations.

Tags: parboiled, white, exports, rice, India, export duty, Non-Basmati