Twenty per cent export duty on parboiled rice to affect Telangana more

Though it was claimed to be a temporary measure intended only for maintaining adequate local stocks and keep domestic prices under check, the impact was instant.

Hyderabad: Buyers have stopped purchase of parboiled rice all over Telangana and Andhra Pradesh as the Centre had imposed 20 per cent export duty. Being the major producer of parboiled rice, Telangana state is going to bear the brunt. As the export duty came into effect immediately, the millers were also caught unawares with the move.

Though it was claimed to be a temporary measure intended only for maintaining adequate local stocks and keep domestic prices under check, the impact was instant. It has resulted in a sudden price rise by about Rs 800 per 100 kgs. Now the parboiled rice stocks had no takers at all. The impact is not confined to the millers.

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Once millers stay away from buying paddy offering the minimum support price, the responsibility will rest entirely with the government agencies to go to the rescue of the growers, according to a miller who had expressed his displeasure over the 20 per cent export tax imposed close on the heels of total ban on the non-basmati white rice.

A major rice exporter from Andhra Pradesh has said that the parboiled rice business had received a shocker. The Centre had claimed that the 20 per cent export tax would be in effect only till October 16. Duty exemption was extended on parboiled rice lying in customs ports which have not been granted LEO (let export order) and are backed by valid LCs (Letter of Credit) before August 25.

‘Let us wish it would be a temporary measure’. Otherwise the farmers would pay the price, he added. When the government imposed restrictions on non-basmati rice, Telangana state, a major producer of paddy could seek solace from the fact that the parboiled rice component was not part of the curbs. But now that window has also been closed.

Shipment of over 22 lakh tonnes of parboiled rice takes place every year only from the Kakinada port. This comes entirely from Telangana, Chhattisgarh and Andhra Pradesh. Telangana’s share of par boiled rice exports through Kakinada port would be in the order of 10 to 11 lakh tonnes per annum. The centres move was expected to have a telling effect on the rice growers at large.