The government is considering to give new harmonised system (HS) codes, a numerical classification mandatory for internationally-traded products, to boost exports of geographical indication (GI) tagged rice varieties, a commerce ministry official said on Tuesday. The move will ensure that in case of any ban or restriction on exports of broken or white rice, such unique varieties are exported unhindered.
What are GI rice varieties?
GI rice varieties are those that have been granted the geographical indication (GI) certification, which indicates that they originate from a specific region and have distinctive qualities or reputation. There are 28 varieties of rice with GI certification in India. They are from Kerala, Maharashtra, Odisha, Bihar, Madhya Pradesh, Himachal Pradesh and other states. Some of the popular GI rice varieties are Gobindobhog (West Bengal), Kala Namak (Uttar Pradesh), Jeeraphool (Chhattisgarh) and Johra (Assam).
Why do they need separate HS codes?
At present, there are six HS codes for non-basmati rice and one for basmati rice. However, these codes do not capture the diversity and uniqueness of the GI rice varieties, which have different characteristics, quality and price than the common rice varieties. By allocating separate HS codes for GI rice varieties, the government aims to facilitate their identification, traceability and promotion in the global market. This will also help in protecting the intellectual property rights of the farmers and producers of these varieties.
What are the benefits of separate HS codes?
Separate HS codes for GI rice varieties will have multiple benefits for the exporters, farmers and consumers. Some of them are:
- Exporters will be able to showcase the distinctiveness and value addition of their products to the buyers and negotiate better prices.
- Farmers will get higher returns for their produce and incentives to conserve and cultivate these traditional varieties.
- Consumers will get access to authentic and quality products with clear origin and specifications.
- The country will enhance its image and reputation as a producer and exporter of diverse and high-quality rice varieties.
What is the current status of GI rice exports?
The exports of fresh fruits and vegetables have risen by 21% in the first nine months of FY24 to $1.36 billion on year. However, the exports of non-basmati rice have been affected by the government’s decision to impose a ban on white rice exports in December 2023 to keep prices in check in the domestic market. In the wake of this restriction, total shipment in the current fiscal is likely to fall by 50-60 lakh tonnes from 220 lakh tonnes in 2022-23, which was a record. The government is in talks with the stakeholders to allocate separate HS codes for GI rice varieties soon to revive their exports.
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