In a significant move to bolster the export of Geographical Indication (GI)-recognized rice varieties, India is developing new Harmonized System of Nomenclature (HSN) codes. This initiative aims to streamline the export process for unique rice types such as Red Rice, Black Rice, and Kalanamak Rice, which hold GI tags.
Why is India Introducing New HS Codes for GI-Tagged Rice?
For years, India’s rice exports have been categorized under broad HSN codes, making it difficult to distinguish between general and specialty rice varieties. This has created challenges, especially during export restrictions or policy changes. The new HSN codes aim to:
- Provide distinct recognition to GI-tagged rice varieties such as Red Rice, Black Rice, and Kalanamak Rice.
- Help exporters in avoiding unnecessary trade barriers.
- Ensure that premium rice varieties receive fair pricing and global recognition.
How Have Recent Policy Changes Impacted Rice Exports?
In recent months, India has made several policy adjustments to balance its domestic needs while keeping its rice exports competitive globally. Some key changes include:
- September 2024: The Indian government reduced the export duty on rice in the husk (paddy or rough), husked (brown) rice, and parboiled rice from 20% to 10%. Additionally, the export duty on semi-milled or wholly-milled rice (excluding parboiled and Basmati rice) was eliminated .
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October 2024: Further boosting rice exports, the government removed the export duty on parboiled rice and husked rice, making these varieties more accessible in global markets .
What Are the Expected Benefits of These New HS Codes?
The introduction of specific HS codes for GI-recognized rice varieties is likely to bring multiple advantages, including:
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Better Market Positioning: Dedicated codes will help GI-tagged rice varieties stand out in global markets, ensuring better branding and competitive pricing.
- Easier Trade and Customs Clearance: New codes will simplify export documentation and reduce the chances of misclassification.
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Protection Against Export Restrictions: In case of trade bans or duty hikes on general rice categories, having specific HS codes will help ensure these specialty rice varieties are treated separately and protected from broad restrictions.
What Does This Mean for the Future of GI-Tagged Agricultural Products?
India’s move to assign specific HS codes to GI-recognized rice varieties reflects a broader strategy to protect and promote its unique agricultural heritage. By ensuring that these products have distinct classifications, the government acknowledges their cultural and economic significance. This approach not only safeguards the interests of farmers but also positions India to better cater to niche markets globally, where there is a growing appreciation for specialty agricultural products.
Summary of the news
| Topic | Details |
|---|---|
| Why in News? | India has introduced new HS codes to allow the export of Geographical Indication (GI)-recognized rice varieties like Red Rice, Black Rice, and Kalanamak Rice. This move differentiates them from general non-basmati rice to prevent export restrictions and promote global trade. |
| HS Code | A globally recognized system for classifying traded goods, used for taxation and trade policies. |
| Geographical Indication (GI) Tag | A certification for products that originate from a specific region and possess unique qualities due to that origin. |
| Key GI-Tagged Rice Varieties | Red Rice, Black Rice, Kalanamak Rice |
| India’s Rice Export Policy | India had banned non-basmati white rice exports, affecting GI rice varieties due to lack of differentiation. The new HS codes resolve this issue. |
| Ministry Responsible | Ministry of Commerce and Industry |
| India’s Rank in Rice Exports | India is the world’s largest rice exporter. |
| Largest Rice Importing Countries | China, Bangladesh, African nations, Middle Eastern countries |
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