The government has allowed 5 per cent MEIS benefit on export of non-basmati rice during the next four months after shipments of the commodity declined 13 per cent during first half of the current fiscal. The move may help exporters boost shipments.
Non-basmati rice has been made eligible for MEIS benefits at the rate of 5 per cent for exports made between November 26 and March 25, 2019, the Directorate General Foreign Trade said in a notification. The Merchandise Exports from India Scheme (MEIS) was started in 2015 under which exporters get 2-5 per cent (of FOB value) of their exports as duty credit scrip. The value on the scrip can be adjusted against payment of the import duty and the GST.
“This has come at an opportune time. Hopefully, the decline in export of non-basmati rice may be recovered in the next four months,” said BV Krishna Rao, president of Kakinada-based Rice Exporters Association. However, the decline in shipments to Bangladesh may not see an immediate jump due to the MEIS, he said. India exported 37.23 lakh tonne of non-basmati rice (worth Rs 10,426 crore) during April-September, against 42.87 lakh tonne in the year-ago period. FE