Export Policy Of Basmati Rice From India

Table of Contents

• Export Records
• Main Exportable Countries:
• Documents Required For Exporting
• Export Policy of Basmati Rice
• Process for Exporting Rice From India:
• Export of Indian Basmati Rice
• Conclusion

India is the leading basmati rice exporter country, specializing in Indian basmati and non-basmati. During the year 2015-16, there has been a record of the export of Basmati rice and non-basmati rice about 104.05 Lakh MT worldwide.

Rice is an essential item in everyone’s dining table. To reach out everywhere, Indian basmati rice exporters are working hard and exporting to various countries as per the demands.

The production of food grains in 2019-2020 was 296.65 MMT and the horticultural production of 319.57 MMT, the highest on record.

Export Records

India’s Agricultural Export Policy, 2018 was approved by the Indian government in December 2018. The new policy aimed to increase India’s agricultural exports to $ 60 billion by 2022 and $ 100 billion over the years.

In 2019, India was the second-largest basmati rice exporter country and the 9th largest exporter of all other agricultural products. The total value of exported agricultural products amounted to $ 37.4 billion.

Basmati Rice and non-basmati rice exports increased from $ 1.9 billion in April-June 2020 to $ 2.3 billion in April-June 2021.

The agricultural exports and of other products from 2020, April to 2021 February, amounted to 2.74 crores which compared to 2.31 crore in the same period. It is an indication of an increase of 18.49%. 

Between April and December 2020, basmati rice exports amounted to $ 2,947 million compared to $ 2,936 million reported in the same period the previous year. 

Main Exportable Countries:

India Basmati rice exporter’s main target countries to export are Iran, Saudi Arabia, Iraq, UAE, Kuwait, European countries, etc.

The volume of tea exported from April to January 2021 was 172.46 million kg, with the CIS being the most exported Indian tea with 42.64 mkg. The United Arab Emirates was the largest importer of Indian tea during the same period with 10.92 mkg of imports.

The large population and increasing urban and rural incomes have contributed to the growth in demand for agricultural products. In accordance with the 2020-2021 Indian Union budget, an allocation of $ 40.06 billion has been allocated to the Ministry of Agriculture.

India ranks first for the number of organic farmers and ninth for the area cultivated organically.

Documents Required For Exporting

There are a few things that are mandatory to submit while exporting the items to other countries. Below is the list of those required documents:

1. Copy of code issued by DGFT for import-export, self-certified.
2. Authoritative duly signed copy of bank certificates.
3. One cancelled cheque.
4. There is a condition for those exporters who desire to be the manufacturer exporter. Then they must furnish a copy of their company registration with relevant certificates by agencies of that particular food item.

Indian Basmati Rice exports were valued at $ 715.24 billion in August 2021 with a positive growth of 6.58% compared to exports of $ 671.08 billion in August 2020.

In five years, the agricultural technology of India reached $ 24.1 billion. The current size of the agricultural technology market, including AI-based agricultural innovation start-ups in India, is worth nearly $ 204 million.

Export Policy of Basmati Rice

The export policies are made by DGFT which refers to, Director- General of Foreign Trade. Recently, In 2020, August, the DGFT has issued new policies regarding basmati rice trading. These policies must be adhered by the rice exporters of India. 

• The export policy for Basmati and non-basmati rice is free whether it is in raw form or in parboiled / processed form.
• Some European countries such as: Iceland, Norway, Liechtenstein and Switzerland and the EU member states, all are permitted subject to issuance of Certificate of Inspection by the export agencies.
• Issue of certificate of inspection is becoming mandatory for export to the remaining European countries with the effect from January, 2021.

These are some major changes, which DGFT has made in their latest notification.

Process for Exporting Rice From India:

The process of exporting rice to different countries from India is a huge task that contains many steps to follow. Hereby we are providing you with the basic steps for the same:

1. Registration of a firm – The basic first step is to complete the registration of the firm, which you are planning to establish for exporting. The process of registration takes almost 20-25 days. After completing this process, you will get the PAN number for your company.

2. IEC code – When your company is successfully established, you will need an IEC code. It is most mandatory to have as it is directly connected to the import and export of the items.

3. Fees ready – It is the process to generate the export license. For that, you need to submit the fees as per the requirement. It has been directly sent to the DGFT centre, The director-general of foreign trade. 

4. Banker Certificate – This certificate is required and in this document must have the company details, account number, directors or type of firm, photo. It is basically a bank account verification.

5. PAN Card – Need to submit the PAN card.

6. Photograph – One of the important things, a full size photo of the director attested. 

7. MOA – This is the issued certificate by the registrar office, which needs to be filled by the company owner.

8. Company registration – The proof for the company establishment is required to be attached along with other documents. It is a certificate under the section 59 of IPC 1932 Act.

9. Target country – It is the final process, in which you have to chase the country. For this, you have to analyse the market deeply. Search out the names where the Basmati rice is exported largely and shortlisted them simultaneously. 

These are the basic information and the general procedure for the beginner rice exporters of India. Even, in other items or products, the basic process will be the same.

Export of Indian Basmati Rice

Basmati rice continues to be the topmost export item from India to other countries. It has given a tough fight to other items which have been at the top of the list. 

Indian basmati rice exporters mainly export to Saudi Arabia and Iran. As per the records, only Iran imports one-fourth of the rice from India. Hence, the exports have increased by 1.18 million tonnes. 

The other factor which seems to be the reason for the hike in rice exports is the downfall in buffalo meat exports. This item’s import is declined by 279,409 tonnes from 2017. From where the increment in Basmati rice exports and exporters has started.

In the year 2021, the exports of non-basmati

increased by 26,058 crores. The APEDA’s Chairman has declared the fine quality and ensures it. The Indian rice exporters deliver the best aromatic rice with proper adhering to the hygiene tacts.

Conclusion

The export of rice from India has been happening for centuries. There is a huge demand for it every passing year. Hence, the changes and improvements in the policies are inevitable thing.

These policies are required because of just exports. The main objective of the import and export policy is to enhance the growth of the country’s economy. Also, to enrich the efficiency of Indian agriculture.

With these imports and exports, there is a fine relationship between the countries and establishing a unity between the two. As we are aware of the importance of trade in this eCommerce century. 

It is the ongoing era of globalization, which is highly effective in the developing country to achieve its goal. And, for that export and import play a significant role. The exports basically help in attaining credibility to the standing of the county in the global market.

Thus, exports are an important thing, so the policies are the basic requirement for this. It is considered the highest priority of the government of India.