Haryana rice exporters seek withdrawal of Rs 70 levy on basmati exports
By Parveen Arora
Haryana Rice Exporters Association urged the Union Commerce Ministry Secretary and Chairman of Agricultural and Processed Food Products Export Development Authority (APEDA) to immediately suspend or withdraw the Basmati Export Development Fund (BEDF) and the levy of Rs 70 per metric tonne plus GST on basmati rice exports.
In a letter to Abhishek Dev, Chairman, APEDA, Ministry of Commerce and Industry, the association highlighted the severe financial and operational stress faced by exporters due to global disruptions and rising costs.
Association president Sushil Jain said that exporters are already grappling with war-related disturbances, delayed export realisations, higher freight, increased insurance premiums, and blocked funds overseas.
“Continuation of BEDF at Rs 70 PMT plus GST is imposing a substantial and avoidable burden on the rice industry and is further weakening the competitiveness of Indian Basmati exports,” he said.
He further said that war and geopolitical disruptions have led to shipment delays, cargo diversions, detention, and warehousing expenses. Shipping companies are imposing abnormal surcharges, sharply increased freight, and emergency charges, further escalating costs. The working capital cycle of rice exporters is under strain, as procurement is seasonal and stocks must be financed for long periods, he added.
Besides, he raised the issue that interest subvention support has been progressively reduced, leaving MSME exporters with limited relief. “Export margins are already under stress due to rising operational costs and lower realizations, so we request the Union government to suspend the levy of Rs 70 with GST,” he urged.
The association warned that the levy makes Indian Basmati less competitive in global markets and could adversely impact farmers by pushing down paddy purchase prices.
Vijay Setia, former president of All India Rice Exporters Association, said that rice exports of Basmati started about 30 years back. Since, at that time, the industry had limited resources, it had approached the Union government for the promotion of basmati.
The government directed APEDA to support the rice export industry and they started charging Rs 10 per ton for promoting their business and maintaining a track record.
He further said that later it was raised to Rs 30 with a condition that the total fund will be above Rs 10 crore, the charges will be suspended, but from last year, the APEDA has increased it to Rs 70, which is a huge burden of around Rs 50 crore on the industry.
“We request the government to intervene in the suspension of this levy of Rs 70 per MT on rice export to support the industry during the war-dying crisis,” he urged.
This article has been republished from The Tribune.