Rice Export-Trade Operations Procedures in India
1. INTRODUCTION: ARISE IN RICE
India is one of the largest and most important countries in the world in export of rice. The All India Rice Exporters Association (AIREA) expects that India could export 4.5 mt of normal rice and another 2.5 mt of aromatic long-grain basmati rice in 2011-12. The USDA Foreign Agriculture Services Report 2012 predicts exports at 7 mt are set to reach second place in the world markets after Thailand, edging out Vietnam. Rice production in India is an important part of the national economy. India is one of the world's largest producers of white rice, accounting for 22% of all world rice production as per FAO in 2011-12. The production reached a record rice production of 103 million tonnes in 2010-11 on the back of better monsoon. Per hectare yields have also arisen to almost 2.2 Tonnes/Hectare. The expected decline in rice production in leading rice exporting nations such as Thailand, Vietnam and Pakistan may also favor India's exporters. Rice production in Thailand, the largest exporter, is expected to decline in 2011-12 due to a damaged crop, following floods. The Thai government's decision to increase its minimum purchase price of rice may also reduce the competitiveness of Thai rice globally. White milled Thai rice, for instance, is expected to be priced at USD600 to USD610 per tonne, higher by USD120 to USD150 per tonne over the comparable variety of Indian rice. The depreciation in the value of the Indian rupee against the US dollar since April 2012 by almost 20% may also benefit rice exporters, as it makes India's rice more competitive globally. A CRISIL study expects the profitability of India's rice millers to increase by 150-200 basis points over the coming FY. The current Minimum Export Price of $700/tonne and $900/tonne for non-basmati rice will also add to FX arbitrage for exporters in rupee terms, thus significantly increasing their profits.
The Government’s Tax-Free incentives for Rice exports are continued in the Union
India is one of the largest and most important countries in the world in export of rice. The All India Rice Exporters Association (AIREA) expects that India could export 4.5 mt of normal rice and another 2.5 mt of aromatic long-grain basmati rice in 2011-12. The USDA Foreign Agriculture Services Report 2012 predicts exports at 7 mt are set to reach second place in the world markets after Thailand, edging out Vietnam. Rice production in India is an important part of the national economy. India is one of the world's largest producers of white rice, accounting for 22% of all world rice production as per FAO in 2011-12. The production reached a record rice production of 103 million tonnes in 2010-11 on the back of better monsoon. Per hectare yields have also arisen to almost 2.2 Tonnes/Hectare. The expected decline in rice production in leading rice exporting nations such as Thailand, Vietnam and Pakistan may also favor India's exporters. Rice production in Thailand, the largest exporter, is expected to decline in 2011-12 due to a damaged crop, following floods. The Thai government's decision to increase its minimum purchase price of rice may also reduce the competitiveness of Thai rice globally. White milled Thai rice, for instance, is expected to be priced at USD600 to USD610 per tonne, higher by USD120 to USD150 per tonne over the comparable variety of Indian rice. The depreciation in the value of the Indian rupee against the US dollar since April 2012 by almost 20% may also benefit rice exporters, as it makes India's rice more competitive globally. A CRISIL study expects the profitability of India's rice millers to increase by 150-200 basis points over the coming FY. The current Minimum Export Price of $700/tonne and $900/tonne for non-basmati rice will also add to FX arbitrage for exporters in rupee terms, thus significantly increasing their profits.
The Government’s Tax-Free incentives for Rice exports are continued in the Union