Sops for Uttaranchal rice export continue

To provide farmers remunerative prices and strengthen the agri-based economy of Uttaranchal, the state government has approved the rice export policy for five years till September 2010.

Under the policy, the export of basmati and pusa basmati rice from the state has been kept levy-free. However, other varieties of rice will be charged levy as per the prevailing rates.

Besides, no mandi fee or development cess will be charged on exported rice and the paddy used to produce it. Exemption from trade tax continues on the paddy too.

An order to this effect was issued by Agriculture Secretary Om Prakash, official sources said here yesterday.

To avail themselves of these facilities, rice growers or exporters will have to give proof, including the bill of loading and attested copies of Form 'H', stating how much rice was being exported and to which country.

Moreover, the direct exporters will have to give a guarantee that under the scheme whatever facilities they are getting will be passed on to indirect exporters of the state.

Generally, the ratio of paddy to rice and paddy to husk is 2: 3 and 1:3, respectively, whereby the standard recovery of rice from paddy is considered to be 66.66 per cent.

Under the policy, the export obligation for basmati rice has been set at 50 per cent. If a miller or rice grower exports more than 50 per cent, he has to pay trade tax, the mandi fee, and a development cess on the difference between 50 per cent and 66.66 per cent because it will be considered domestic sale.

Similarly, if a miller exports less than 50 per cent, he will not be entitled to exemption from trade tax, the mandi fee and the development cess.

Export obligation for non-basmati rice has also been set at 50 per cent, and if an exporter exports less rice than 50 per cent, he will not be entitled to exemption from trade tax, the mandi fee and the development cess.

Every rice grower and exporter will have to make his free registration with the Uttaranchal Industrial Development Corporation to get the facilities.