Govt to give 5% subsidy for non-basmati rice exports for four months; move to help keep local prices steady

Mumbai: India, the world’s biggest rice exporter, will give incentives for non-basmati rice shipments to help boost flagging overseas sales, the government said in an order reviewed by Reuters. [caption id=“attachment_2646064” align=“alignleft” width=“380”] Representational image. Reuters[/caption] The government will give a subsidy of 5 percent for non-basmati rice exports for the four months to 25 March, 2019, the trade ministry said in the order on Thursday. The subsidy will help accelerate exports in the next few months, Nitin Gupta, vice president of the rice business at Olam India, told Reuters. India’s non-basmati rice exports have weakened this year despite a weaker rupee that makes the grain cheaper for holders of other currencies. India’s rice exports fell 9.6 percent to 5.8 million tonnes in the first six months of the financial year that began in April, according to official government data, as Bangladesh, a leading buyer, cut purchases due to a bumper harvest. The decision to give financial support for non-basmati rice exports would also help keep local prices steady, especially when new-season supplies tend to drag prices down, said BV Krishna Rao, president of the Rice Exporters Association. New-season rice supplies have already started arriving in the local market.