HomeLifestyleDifficult! One million tonnes of rice stranded at ports across the...

Difficult! One million tonnes of rice stranded at ports across the country after export ban, importer refuses to pay 20% duty

Highlights

India exports about two million tonnes of rice every month.
After the ban, about 7.5 lakh tonnes of white rice are stranded at the port.
Apart from this, a consignment of 3.5 lakh tonnes of broken rice is also stuck at the port.

New Delhi. After banning rice exports by the Indian government, the problems of Indian exporters have increased. About one million tonnes of rice consignment is stuck at Indian ports after foreign rice buyers have refused to pay the additional duty.

The government had imposed a ban on exports to prevent the price of rice from rising in the domestic market and will have to pay an additional 20 per cent duty if it is shipped overseas. News agency Reuters quoted exporters as saying that foreign buyers have refused to pay an additional 20 percent duty on rice imports. Now our one million tonnes of rice is stuck at the port itself.

Also read – Government is considering changes in insurance law, minimum capital requirement will be less

BV Krishna Rao, President of the Rice Exporters Organization of India, says that the government imposed the duty with immediate effect but the buyers were not ready for it. For the time being we have stopped the shipment of rice. After the ban of India, the world’s largest rice exporter, now the problems of rice importing countries around the world including neighboring countries may increase. This restriction has been imposed to prevent the decrease in monsoon rains and decrease in supply in the domestic market.

Every month there is 20 lakh tonnes of export
India exports about two million tonnes of rice every month. Most of the loading in this comes from the eastern port of Kakinda and Visakhapatnam in Andhra Pradesh. Himanshu Aggarwal, executive director of Satyam Balaji, the country’s largest rice exporter, said that usually the government used to allow pre-agreed rice to be shipped despite banning exports, but this time it has not happened.

He said that margins are now very low in rice business, but exporters cannot bear the additional duty of 20 per cent. Therefore, the government should allow the already agreed rice to be sent out. In fact, despite banning wheat exports this year, the government had allowed the already signed agreements to be sent.

How much is the effect of the ban
Exporters have said that after the ban, about 7.5 lakh tonnes of white rice are stranded at the port, on which 20 percent additional duty is to be paid. Apart from this, a consignment of 3.5 lakh tonnes of broken rice is also stuck at many ports of the country. In the current situation, the importers have also refused to pay 20 per cent duty and now it is facing a lot of difficulties in sending these consignments abroad.

The rice stuck at the Indian port was to be exported to countries like China, Senegal. In this, the maximum shipment was of broken rice. At the same time, white rice was to be exported to Benin, Sri Lanka, Turkey and UAE. The exporters have demanded the government to allow the already agreed rice to be shipped. This includes a consignment of 7.5 lakh tonnes of white rice and 5 lakh tonnes of broken rice. India exports rice to 150 countries of the world and the reduction in its shipments will have an impact on rising prices in the global market.

Tags: business news in hindi, Export, Import-Export, Rice

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments