India’s Finance Minister Nirmala Sitharaman has provide you with an modification to the Customs Tariff Act to supply for an HS (Harmonised System) code, permitting the export of geographical indication (GI) recognised rice.
It’s the first time on this planet that an HS code has been launched for GI-recognised rice, commerce analysts say.
The modification was launched within the Price range proposals for 2025-26 on February 1, underneath HS Code 1006-30-11 (parboiled) and 1006-30-91 (white).
The Indian Patent Workplace has given a GI tag to twenty rice varieties. The GI-tag recognised varieties are Navara, Palakkadan Matta, Pokkali, Wayanad Jeerakasala, Wayanad Gandhakasala, Kalanamak, Kaipad, Ajara Ghansal, Ambemohar, Joha, Gobindobog, Tulapanji, Katarni and Chokuwa rice varieties. These varieties acquired the GI tag earlier than March 2020.
GI pending
Rice varieties similar to Bhadara Chinoor, Mushqbudji, Marcha, Khaw Tai (Khamti), Uttarakhand’s Lal Chawl, Kalonunia and Koraput Kalajeera acquired the GI tag between April 2023 and March 2024, whereas the Andaman Karen Musley selection acquired it in the course of the present fiscal.
Moreover GI purposes are pending for 20 rice varieties, together with Seeraga Samba, Seoni Jeera Shankar, Thooyamalli, Kanakchur, Sivagangai Karuppu Kavuni, Ramanathapuran Poongar, Jammu and Kashmir Purple Rice and Wada Kolam Paddy rice.
Barring Kalapad rice in Kerala, the opposite varieties are grown in lower than 12,500 acres every. The Kerala selection is grown on 30,000 acres. Their yields are decrease than typical rice varieties, with a most of two,200 kg/acre being reported for Kalapad.
In accordance with commerce consultants, the HS Code will assist export these GI-tagged rice, significantly when the Centre bans shipments of basic styles of rice.
Rice export ban
The Centre banned the export of damaged rice in September 2022 and imposed a 20 per cent export obligation on shipments of white rice. In July 2023, it banned exports of white rice, levied a 20 per cent export obligation on parboiled rice and stuck a $950 per tonne minimal export worth for basmati.
Through the ban, which was lifted in September 2024, there was a requirement to permit exports of speciality rice varieties similar to Ponni and Swarna Masuri. Moreover, there have been requests to permit exports of GI-tagged rice.
The Centre permitted exports of 1,000 tonnes of Kalanamak rice, which is grown in Uttar Pradesh, from April 2024, when the overall ban on rice exports was in drive.
The modification to the Customs Tariff will now make it attainable for the exports of those GI-tagged rice with none downside or particular notification from the Finance Ministry.
Guarantee traceability
New Delhi-based commerce knowledgeable S Chandrasekaran stated the implementation of authorised customers is necessary to make sure the authenticity of the product and traceability.
“The muse of GI is high quality and popularity. A number of the GI house owners have talked about about inspection physique or mechanism within the assertion of the case or GI Software. Such an inspection mechanism is important to protect the authenticity of the product and in flip, guaranteeing the popularity of the GI-tagged rice,” he stated.
The inspection physique ought to have high quality management specialists moderately than generalise. The GI authority ought to deliver out an in depth process on the standard management and surveillance mechanism. “Nobody is certain if the GI authority audits the registered proprietor on high quality management,” stated Chandrasekaran.
Mentioning the irregularities within the export of natural rice in 2024 when white rice was shipped out as natural rice, he stated the misappropriation by exporters within the labelling of non-organic non-basmati rice and non-organic sugar as natural is a vital case research for the federal government to formulate precautionary rules whereas classifying GI rice varieties underneath new HS Code, the commerce knowledgeable stated.
