IREF urges fiscal measures in Budget 2026 to boost rice exports and farmer earnings

The Indian Rice Exporters' Federation (IREF) has asked the Union government to provide specific fiscal and policy measures through the Union Budget 2026 in order to strengthen India's rice export ecosystem, which includes both basmati and non-basmati varieties.

In a letter to Union Finance Minister Nirmala Sitharaman, the federation pointed out the strategic role that rice exports play in India's economy, rural employment, and global food security.

What did IREF say?

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The Federation, in its letter, said, "The rice sector faces ecological stress (notably groundwater depletion in major paddy belts), high fiscal costs of procurement and storage, and market/compliance volatility. Union Budget 2026 can strengthen competitiveness while improving sustainability and farmer outcomes through targeted fiscal and enabling measures."

Through the publication of its "Vision 2030", we more particularly refer to the IREF and its four demands.

To ease environmental degradation and increase productivity in the long run, they asked for tax and investment incentives for water-saving and low-emission practices like AWD, DSR, and laser land levelling, along with energy-efficient milling, all of which would be accompanied by proper verification.

In addition, they proposed that the government give farmers financial support in the form of incentives for those who will be switching their lands to the cultivation of premium basmati, GI-tagged, organic, and speciality non-basmati rice. This, according to their argument, would make farmers' incomes higher, support market-driven diversification, and lessen reliance on MSP-based procurement.

Additionally, the industry has requested government support to make the export process more competitive such as interest subsidy on the working capital needed for export credit, together with low-cost logistics measures like freight and port facilitation specifically aimed at the sector's needs.

They also called on the government not only to continue but also to fine-tune the RoDTEP scheme for rice exports to ensure that taxes embedded are fully offset and that India does not lose export competitiveness.

Moreover, stakeholders stressed the need for enhanced export finance guarantees and an upgrade of the whole compliance infrastructure covering testing, traceability, and quality assurance systems, as this would help India keep its reputation in the premium international markets secured.

"These measures will directly lower exporters' costs, incentivise sustainability, and encourage scaling of value-added shipments. IREF requests that rice, as a key agri-export, be explicitly covered in relevant budgetary initiatives for export credit, logistics and trade facilitation," said Dr Prem Garg, National President, IREF.

According to the IREF, India is responsible for about 40 per cent of the global rice market, which is a remarkable level of power that India does not exhibit in any other product category.

"Having met domestic food security requirements, India is structurally well placed to supply international markets at scale."

During the fiscal year 2024-25, India's rice exports reached approximately 20.1 million tonnes, which were sent to over 170 nations.

With ANI inputs