Expect Decline in Rice Export to EU from India.

Rice export to EU poised to decline significantly in the coming months. DGFT issued a notification on guidelines for export of rice to EU. Very few merchant exporters will take the risk of exporting to EU given the high risk and costs involved. Rice export from India have been struggling since the beginning of the financial year. Non-basmati rice exports fell significantly since discontinuation of MEIS scheme by the government in March 2019. Merchant exporters of rice to EU are contemplating the costs and risks involved with export to EU. Earlier merchant exporter would send a sampling letter to the approved EU lab along with sample of rice for EU. After inspection and approval, the same lot would be packed and exported. The cost for it was approximately INR 8000-INR 10000 depending on the lab. The total cost of inspection increased to INR 25000-INR 30000 per container. If EIC/EIA rejects the same, the bags cost would add on to the inspection and lab testing cost as rice need to be packed before inspection.