India Eyes Rice Exports: New HSN Codes for Unique Varieties to Boost Trade

The Indian government is currently exploring the development of new HSN (Harmonised System of Nomenclature) codes for specific rice varieties not commonly consumed within the country to enable their export. This initiative follows the current ban on all non-basmati white rice exports. The Agricultural & Processed Food Products Export Development Authority (APEDA) is involved in creating separate HSN codes for GI (Geographical Indications) rice varieties such as Red rice, Black rice, and Kalanamak rice. 

The move aims to distinguish approximately 40-50 varieties of non-basmati rice for export purposes. Presently, there are six HSN codes for non-basmati rice and one for basmati rice. The Red Sea crisis may impact India's rice exports this year, potentially reducing exports from 22 million tonnes in 2022-23 to about 5-6 million tonnes less. There's also an anticipated 9% drop in agri-exports due to restrictions on exports of commodities like rice, sugar, and wheat.

APEDA has taken initiatives that have broadened the range of agricultural commodities for export and expanded market destinations. India has started exporting newer commodities such as water chestnut and Makhana (fox nut). According to the Global Trade Research Initiative (GTRI), India's agricultural export basket is heavily dependent on five commodities, accounting for 51.5% of total agricultural exports. APEDA is also updating the guidelines for the National Programme for Organic Production (NPOP), with new robust and credible guidelines expected to be released shortly.

The export of agricultural products from India, which began at USD 0.6 billion in 1987-88, has escalated to USD 26.7 billion in 2022-23, reaching over 200 countries. India currently exports fresh fruits to 111 countries and is planning trial shipments of mangoes and pomegranates to the USA and the European Union via sea routes.