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Non-basmati exporters want sops under MEIS extended
Mar 15, 2019

Indian non-basmati rice exporters have begun to lose the white rice market in Africa, the largest buyer, to competitors such as Vietnam, Myanmar and Pakistan as a hike in the minimum support price for paddy and an appreciating rupee have impacted the competitiveness of the cereal.
 
Though the Centre had provided an incentive of 5 per cent under the Merchandise Exports from India Scheme (MEIS) since November 25, the recent strengthening of the rupee has offset the impact of the scheme, exporters said.
 
Moreover, the MEIS ends on March 25 and so far, there has been no clarity on its continuation. As a result, international buyers are holding on to their orders, awaiting the Indian government’s stance on the incentive. “No orders are being booked beyond March 25. As a result, there’s a kind of uncertainty, said BV Krishna Rao, President of The Rice Exporters Association, in Kakinada.
 
Rice exporters have urged the Centre to extend the MEIS till March 2020, when the current export policy ends. We also want the Government to enhance the quantum of the MEIS incentive to 10 per cent to deal with the challenges posed by the volatile currency also the lower prices of the competitors, Rao said. The rupee was trading at 74 against the US dollar during November end when MEIS was introduced for rice. Now the rupee is trading at 69.35 against the dollar, Rao said.
    

The Hindu Businessline

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