The Indian Rice Exporters’ Federation (IREF) has formally appealed to the Union government to introduce specific fiscal and policy interventions in the upcoming Union Budget for 2026. The goal is to reinforce the ecosystem supporting India's rice exports, encompassing both the premium basmati and the widely traded non-basmati varieties.
Key Challenges and Demands for Sustainability
In a detailed representation made to Finance Minister Nirmala Sitharaman, the federation highlighted the critical role of rice exports in bolstering the national economy, supporting rural livelihoods, and ensuring global food security. The communication, reported by ANI, pinpointed several pressing issues plaguing the sector.
The federation cited ecological stress, particularly the alarming depletion of groundwater in major paddy-growing regions, alongside the high fiscal costs associated with public procurement and storage, and significant market volatility. IREF argued that well-directed budgetary support is essential to enhance the industry's competitiveness while promoting sustainable practices and securing better financial returns for farmers.
Priority Measures for the Value Chain
IREF laid out a clear set of priority requests designed to aid the entire rice value chain. A central proposal is the creation of tax and investment incentives for farmers and processors who adopt and can verify water-saving and low-emission agricultural techniques.
These practices include Alternate Wetting and Drying (AWD), Direct Seeded Rice (DSR), laser land levelling, and the use of energy-efficient milling technology. The federation believes such incentives would mitigate environmental damage and improve long-term farm productivity.
Furthermore, the exporters' body urged the government to promote a shift in cultivation towards higher-value crops. This involves encouraging farmers to grow more premium basmati rice and Geographical Indication (GI)-tagged, organic, and specialty non-basmati varieties.
This strategic shift, IREF stated, would enable farmers to earn higher incomes, encourage diversification driven by market demand, and reduce over-reliance on the Minimum Support Price (MSP) based procurement system.
Boosting Export Competitiveness and Infrastructure
To directly improve export competitiveness, IREF has sought an interest subvention on export credit to alleviate the working capital constraints faced by exporters. It also requested targeted measures to facilitate freight and port handling, aiming to bring down the logistics costs that are a major burden for rice shipments.
The federation emphasized the need to continue and suitably calibrate the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme specifically for rice. Ensuring full refunds of embedded taxes, it noted, is vital for India to maintain its edge in international markets.
Another significant area of focus is the need to strengthen export finance guarantees and modernize compliance-related infrastructure. This entails upgrading testing facilities, implementing robust traceability systems, and enhancing quality assurance mechanisms to safeguard India's reputation in premium global markets.
Dr. Prem Garg, National President of IREF, stated that these proposed measures would directly lower costs for exporters, reward sustainable operations, and encourage an increase in value-added shipments. He stressed that rice exports must be explicitly included in budgetary initiatives concerning export credit, logistics, and trade facilitation.
India's Dominant Position in Global Trade
Citing industry data, the federation underscored India's commanding position in the world rice trade. The country currently accounts for approximately 40% of global rice trade, a level of dominance not seen in any other major commodity.
Having successfully met domestic food security requirements, India is in a strong position to supply international markets at a large scale. In the financial year 2024-25, India exported around 20.1 million tonnes of rice to over 170 countries worldwide, as per figures shared by IREF.
