The Indian Rice Exporters’ Federation (IREF) has appealed to the Union government for targeted fiscal and policy measures in the forthcoming Union Budget 2026 to support the rice export sector. In a communication to Finance Minister Nirmala Sitharaman, the federation underscored the importance of rice exports for the economy, rural livelihoods, and global food security. They pointed out several challenges facing the sector, including ecological stress and rising costs, and called for strategic budgetary assistance to enhance competitiveness and sustainability.
Challenges Facing the Rice Export Sector
IREF has identified various challenges threatening the rice export sector. Key issues include ecological stress, especially groundwater depletion in critical paddy-producing regions, high procurement and storage costs, and market volatility. The federation contends that targeted fiscal measures in the Union Budget 2026 can help address these problems, promoting sustainability and improving outcomes for farmers. Their letter emphasizes the need for urgent government action to mitigate these concerns, which are vital for the sector’s long-term viability.
Proposed Measures for Sustainability and Growth
To bolster the rice export ecosystem, IREF has proposed several priority demands aimed at supporting the entire rice value chain. A major request includes introducing tax and investment incentives for farmers who adopt verified water-saving and low-emission farming practices. Techniques such as Alternate Wetting and Drying (AWD), Direct Seeded Rice (DSR), and energy-efficient milling technologies are encouraged. The federation believes these initiatives will reduce environmental stress and enhance productivity over time. Additionally, IREF advocates for encouraging farmers to grow premium basmati rice and organic, specialty non-basmati varieties, which could lead to increased earnings and lessen dependence on minimum support price systems.
Enhancing Export Competitiveness
To boost the competitiveness of Indian rice exports, IREF has called for interest subventions on export credit to relieve financial pressures faced by exporters. The federation also requests targeted measures to simplify freight and port operations, essential for lowering logistics costs associated with rice shipments. Furthermore, they stress the importance of continuing and properly calibrating the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for rice, ensuring adequate refunds for embedded taxes. This is crucial for maintaining India’s competitive position in the global market.
Strengthening Infrastructure and Compliance
Another significant issue highlighted by IREF is the need to enhance export finance guarantees and improve compliance-related infrastructure. This involves upgrading testing facilities, traceability systems, and quality assurance measures to protect India’s reputation in international premium markets. Dr. Prem Garg, national president of IREF, noted that these measures would significantly reduce exporters’ costs, promote sustainability, and foster the growth of value-added shipments. He emphasized that rice should be specifically included in budgetary initiatives regarding export credit, logistics, and trade facilitation. With India representing approximately 40 percent of global rice trade, the federation believes the country is well-equipped to meet international demand while ensuring domestic food security.
Digihunt is not a financial advisor and this is not investment advice.