India introduces new HS code to allow exports of GI-recognised rice varieties
India’s Finance Minister Nirmala Sitharaman has come up with an amendment to the Customs Tariff Act to provide for an HS (Harmonised System) code, for the export of geographical indication (GI) recognised rice.
It is the first time in the world that an HS code has been introduced for GI-recognised rice, trade analysts say.
The amendment was introduced in the Budget proposals for the2025-26 financial year on February 1, under HS Code 1006-30-11 (parboiled) and 1006-30-91 (white).
The Indian Patent Office has given a GI tag to 20 rice varieties. The GI-tag recognised varieties are Navara, Palakkadan Matta, Pokkali, Wayanad Jeerakasala, Wayanad Gandhakasala, Kalanamak, Kaipad, Ajara Ghansal, Ambemohar, Joha, Gobindobog, Tulapanji, Katarni and Chokuwa rice varieties. These varieties got the GI tag before March 2020.
GI pending
Rice varieties such as Bhadara Chinoor, Mushqbudji, Marcha, Khaw Tai (Khamti), Uttarakhand’s Lal Chawl, Kalonunia and Koraput Kalajeera got the GI tag between April 2023 and March 2024, while the Andaman Karen Musley variety got it during the current fiscal.
Besides GI applications are pending for 20 rice varieties, including Seeraga Samba, Seoni Jeera Shankar, Thooyamalli, Kanakchur, Sivagangai Karuppu Kavuni, Ramanathapuran Poongar, Jammu and Kashmir Red Rice and Wada Kolam Paddy rice.
Barring Kalapad rice in Kerala, the other varieties are grown in less than 12,500 acres each. The Kerala variety is grown on 30,000 acres. Their yields are lower than conventional rice varieties, with a maximum of 2,200 kg/acre being reported for Kalapad.
According to trade experts, the HS Code will help export these GI-tagged rice, particularly when the Centre bans shipments of general varieties of rice.
Rice export ban
The Centre banned the export of broken rice in September 2022 and imposed a 20 per cent export duty on shipments of white rice. In July 2023, it banned exports of white rice, levied a 20 per cent export duty on parboiled rice and fixed a $950 per tonne minimum export price for basmati.
During the ban, which was lifted in September 2024, there was a demand to allow exports of speciality rice varieties such as Ponni and Swarna Masuri. Besides, there were requests to allow exports of GI-tagged rice.
The Centre permitted exports of 1,000 tonnes of Kalanamak rice, which is grown in Uttar Pradesh, from April 2024, when the general ban on rice exports was in force.
The amendment to the Customs Tariff will now make it possible for the exports of these GI-tagged rice without any problem or special notification from the Finance Ministry.
Ensure traceability
New Delhi-based trade expert S Chandrasekaran said the implementation of authorised users is important to ensure the authenticity of the product and traceability.
“The foundation of GI is quality and reputation. Some of the GI owners have mentioned about inspection body or mechanism in the statement of the case or GI Application. Such an inspection mechanism is critical to preserve the authenticity of the product and in turn, ensuring the reputation of the GI-tagged rice,” he said.
The inspection body should have quality control specialists rather than generalise. The GI authority should bring out a detailed procedure on the quality control and surveillance mechanism. “No one is sure if the GI authority audits the registered owner on quality control,” said Chandrasekaran.
Pointing out the irregularities in the export of organic rice in 2024 when white rice was shipped out as organic rice, he said the misappropriation by exporters in the labelling of non-organic non-basmati rice and non-organic sugar as organic is an important case study for the government to formulate precautionary principles while classifying GI rice varieties under new HS Code, the trade expert said.
This article has been republished from The Hindu Business Line.