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Rice exporters seek interest subvention to ease cost pressures & boost global competitiveness
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Friday, 09 January, 2026, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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Indian rice exporters have urged the government to introduce interest subvention support for the sector, citing rising financial stress, higher borrowing costs, and intense competition in the global market. The demand comes at a time when exporters are navigating fluctuating global prices, tight margins, and increased working capital requirements, particularly after recent policy interventions and market volatility.
According to industry stakeholders, access to low-cost credit has become critical to sustain export operations, especially for small and medium exporters who rely heavily on bank financing to manage procurement, storage, and logistics. Exporters argue that interest subvention would help offset higher interest rates and enable them to remain competitive against suppliers from countries such as Vietnam, Thailand, and Pakistan, where financing costs are relatively lower.
The rice export sector plays a vital role in India’s agri-export basket, contributing significantly to foreign exchange earnings while supporting millions of farmers across key producing states such as West Bengal, Uttar Pradesh, Punjab, Haryana, Andhra Pradesh, and Telangana. However, exporters point out that delayed payments from overseas buyers, longer credit cycles, and elevated inventory holding costs have strained cash flows.
Industry bodies have also highlighted that easing the cost of finance would encourage exporters to explore new and emerging markets, diversify product offerings, and invest in better quality control, packaging, and compliance with international standards. This, they say, would not only strengthen India’s position in the global rice trade but also help stabilise domestic procurement channels for farmers.
Exporters are hopeful that the government will consider extending interest subvention benefits similar to those offered to other export-oriented sectors, particularly in view of India’s broader push to enhance agricultural exports and value-added food products. They believe timely policy support could provide much-needed relief to the sector and ensure continuity in shipments amid global uncertainties.
With global demand for rice remaining steady, industry players emphasise that targeted financial support could act as a catalyst for sustained export growth, improved farmer realisations, and long-term resilience of India’s rice value chain.
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