The Indian Rice Exporters’ Federation (IREF) has urged the government to extend tax incentives, interest subvention and freight support in the Union Budget 2026 to enhance the global competitiveness of India’s rice export sector while addressing sustainability challenges.
In a representation to Finance Minister Nirmala Sitharaman on Tuesday, IREF sought a 4 per cent interest subvention on export credit, 3 per cent support on road and rail freight, and timely disbursal of duty remission benefits under the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme.
“These measures will directly lower exporters’ costs, incentivise sustainability, and encourage scaling up of value-added shipments,” IREF President Prem Garg said.
India accounts for around 40 per cent of global rice trade and exported nearly 20.1 million tonnes of rice to more than 170 countries in the 2024–25 financial year, Garg noted. He described rice exports as a strategic economic asset that supports farm incomes, rural employment and the country’s external sector.
“Sustained leadership in a staple food commodity like rice strengthens India’s economic resilience and also enhances its diplomatic leverage,” he said.
However, the sector continues to face structural challenges, including groundwater depletion in major paddy-growing regions, high procurement and storage costs, and price volatility in global markets.
Garg said the Union Budget 2025–26 presents an opportunity to strengthen the sector’s competitiveness while simultaneously improving sustainability and farmer outcomes through targeted fiscal and policy measures.
Among key demands, IREF called for dedicated support for sustainable rice production through tax and investment incentives linked to verified water-saving and low-emission practices. These include Alternate Wetting and Drying (AWD), Direct Seeded Rice (DSR), laser land levelling, and the adoption of energy-efficient rice milling technologies.
The federation said such measures would help balance export growth with environmental sustainability, ensuring long-term viability of India’s dominant position in the global rice market.
