Five percent benefit on export of non-basmati rice during the next four months has been allowed by the government under Merchandise Exports from India Scheme (MEIS).
This came as a huge relief from firm domestic prices that made exports less profitable.
As per the notification of Directorate General of Foreign Trade, the scheme will come into effect from November 26 and will continue till March 2019. Under the MEIS scheme, exporters will get a certificate from DGFT that can be traded.
According to the statement given to Media by BV Krishna Rao, president of the Rice Exporters Association, “Owing to high minimum support price of paddy, we have been un-competitive in global exports despite rupee depreciation. Rice export has seen a drop of 10% in the past six months. The incentive will make us competitive in the global market.”
“The hike in MSP led to an increase of $40 per tonne at $ 375- $380 a tonne. “We can now expect new contracts to be signed and be competitive compared to Thailand, Vietnam and Pakistan,” he says.
India is currently the world’s biggest rice exporter and exports a quarter of the rice in the world.