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India working to develop HSN codes for certain varieties of rice.
Feb 14, 2024
India is working to develop new tariff codes, called Harmonised System of Nomenclature or HSN codes in trade parlance, for certain rice varieties to enable exports of those which are traditionally not consumed by the people in the country, officials said Tuesday. At present, all categories of non-basmati white rice are banned for exports.
The Agricultural & Processed Food Products Export Development Authority (APEDA), is working on separate HSN codes for rice varieties which are GI (Geographical Indications) tagged such as Red Rice, Black Rice and Kalanamak Rice.
Every product that is globally traded, is coded as per the HSN system which describes and classifies all these goods.
Rajesh Agarwal, additional secretary in the commerce department, said that there are 40-50 varieties of non-basmati rice and when the government bans the export of that, all the varieties such as Sona Masuri, Govind Bhog, Kalanamak, or normal white non-basmati rice get impacted.
He said new HSN code for some other varieties of rice is the demand of the industry and a decision would be taken after a detailed stakeholder consultation.
'We are trying to see whether is there a merit in doing so because as a country on one hand we will not like to impose bans on rice, which we are not worried too much about, but at the same time, we need to see that there is enough incentives for farmers to keep on producing the normal varieties of rice also which is the core staple diet of the country,' he added.
Currently, there are six HSN codes for non-basmati rice and one for basmati rice.
The move assumes significance as the Red Sea crisis is expected to impact India’s rice exports this year. Due to restrictions on exports of rice, sugar, and wheat, India’s agri-exports may fall 9% but the country has started exports of commodities like water chestnut and makhana (fox nut).
He said that in 2022-23, 22 million tones of rice were exported.
'This year we will not be exporting... Non-basmati rice, we are not exporting, because we do not know whether there will be an exportable surplus or not,' he said.
The government is likely to come out with revamped guidelines for the National Programme for Organic Production (NPOP) in the next one month.
APEDA chairman Abhishek Dev said that India’s export of agricultural products has reached $26.7 billion in 2022-23 from $0.6 billion exports in 1987-88.
India has expanded the export basket to over 200 countries and now supplies fresh fruits to 111 countries. The exporters’ body is also planning trial shipments of mangoes, and pomegranates to the US and the EU Union through sea routes.
economictimes.indiatimes.com
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