India’s rice exporters have urged the Centre to extend fiscal support in the Union Budget 2026 to improve global competitiveness and manage rising cost pressures.
The Indian Rice Exporter’s Federation (IREF) submitted a set of recommendations to Finance Minister Nirmala Sitharaman, seeking targeted tax relief, export credit support, and freight incentives. According to the federation, these measures would help stabilise Indian rice prices and strengthen export momentum.
Exporters Seek Credit and Freight Relief
IREF proposed a 4% interest subvention on export credit to ease working capital stress. In addition, it requested 3% support on road and rail freight for rice shipments moving from production centres to ports and inland container depots.
Federation president Prem Garg said these steps would lower logistics costs and improve price competitiveness in overseas markets. He added that exporters need policy certainty to scale value-added rice shipments.
Duty Waiver and RoDTEP Support Requested
The trade body also asked the government to allow timely disbursal of RoDTEP benefits for rice exports to offset embedded taxes. It further sought a one-time waiver on retrospective duty demands linked to the earlier 20% export duty on certain rice varieties.
According to IREF, differing interpretations of duty calculations created unexpected liabilities for exporters. Garg said a waiver would reduce litigation and restore confidence across the supply chain.
High Stocks, Strong Export Potential
India remains the world’s largest rice exporter and accounts for nearly 40% of global rice trade. Recent data shows government rice stocks rose sharply after higher procurement during the new season. Despite this, exporters continue to hold sufficient stocks for overseas shipments.
“Rice exports play a critical role in supporting farm incomes, rural employment, and foreign exchange earnings,” Garg said. However, he also highlighted challenges such as groundwater stress, storage costs, and price volatility.
Tracking Indian rice prices and policy support will remain crucial as India’s exporters aim to strengthen their position among the top 10 rice exporters in India and globally.