Cereals Food Grains
Basmati Rice which has under Value Added Tax (VAT) is now place under 5% bracket in new goods and services tax (GST). Earlier basmati rice was subject to value-added-tax (VAT) or was tax free in different states. This is likely to put the branded players in a disadvantageous position compared to the unbranded rice segment as it would further widen the pricing gap and may result in some transition of demand from branded to unbranded basmati rice.
Karnataka government is planning to set is planning to set up a Rice Technology Parl at Karatagi in Gangavathi of Koppal district. It has identified 315 acre of land. It is also planning to set up Maize Technology Park at Ranebennur which will come up in 60 acres of land. The government has planned to develop the two parks under the public-private partnership model. While the project cost for the Rice Technology Park is Rs. 128 crore, for the Maize Technology Park it is Rs. 111 crore.
The park will be the focal point of agro-based activity in the region catering to most parts of the Tungabhadra Command Area. Sona Masuri, which is a lightweight and aromatic variety of rice, is grown pre-dominantly in this area. This rice is exported to the US, UK, Middle-East, South East Asia and Austra
India is looking to export rice to Indonesia in the year 2016. Both the countries are set to sign a non-binding MoU to implement the deal. Currently, Indonesia is importing rice from ASEAN nations and is looking to import rice from India and Pakistan. It has recently signed a deal with Pakistan to import 1 million tonnes valued at USD 400 million over a period of 4 years. This opportunity comes at a time when there are sagging exports to Iran and Africa. India had exported a total of 11.92 mt rice in 2014-15.