EU to allow duty-free basmati imports

IMPORTS of traditional varieties of Indian basmati rice will be allowed duty-free in the European Union (EU) market from September 1.

Under the terms of latest `Rice Agreement' concluded by India with the European Union (EU), the EU has removed the 65 euros a tonne import duty. The zero-duty regime has been established for specified varieties of Indian basmati rice exported to the EU. This benefit will only be available for the specific traditional varieties.

There are six varieties of basmati rice, which qualify for the zero tariff rate. Currently, India exports some 1,50,000 tonnes of basmati rice a year. For details, exporters may contact the Indian Embassy in Brussels by e-mail : adviser1@indembassy.be.

Pakistan is the second largest supplier and exports some 60,000 tonnes a year and mainly exports Super and Karnal varieties of basmati rice. Under the terms of the Transition Agreement, the European Commission's rate of duty shall be zero until any "market disturbances" occur. If such disturbances occur, the European Commission will consult India's competent authorities to agree on an appropriate solution. If no agreement is reached, the European Commission reserves the right to revert to the bound rate of duty for husked rice (CN Code 1006.20).

Source: Business Line, August 30' 2004