Basmati Exporters Urge Government to Defer Levy

17-Apr-2026 07:07 PM

New Delhi: Basmati rice exporters have urged the Central Government and APEDA to temporarily defer or withdraw the special GST levy of ₹70 per tonne imposed on contract registrations. It is noteworthy that this levy is collected from exporters for the benefit of the Basmati Export Development Foundation.

Exporters state that due to delayed payments, a sharp surge in shipping costs, and a drastic decline in profit margins, the financial position of small and medium-scale exporters has become extremely precarious; consequently, they are currently in no position to pay this levy.

Exporters are concerned that this additional financial burden, in the form of a levy, could severely undermine their competitiveness in the global export market and potentially drive their profit margins into negative territory.

Since the onset of tensions between Iran and the United States, Indian Basmati rice exporters have been navigating an extremely difficult phase and are in dire need of government support, assistance, and incentives.

According to industry analysts, exporters are already grappling with various problems, hurdles, and challenges, while the annual fee for contract registration adds to their financial strain.

It is pertinent to note that the country now exports over 6 million tonnes of Basmati rice annually; based on the levy of ₹70 per tonne, APEDA—or the Foundation—collects revenue exceeding ₹42 crore, exclusive of GST. This constitutes an unbearable financial burden for the exporters.

The government should immediately withdraw this levy to provide some much-needed relief to the exporters. Over 70 percent of India's annual Basmati rice exports are destined for countries across the Middle East, West Asia, and the Gulf region.