India is taking a major step to enhance the export of rice varieties recognized by Geographical Indication (GI) by creating new Harmonized System of Nomenclature (HSN) codes. This effort is designed to simplify the export process for distinctive rice types like Red Rice, Black Rice, and Kalanamak Rice, all of which carry GI tags.
Why is India Introducing New HS Codes for GI-Tagged Rice?
For many years, India’s rice exports have been categorized under general HSN codes, which complicates the process of differentiating between standard and specialty rice varieties. This situation has posed challenges, particularly during times of export restrictions or shifts in policy.
The new HSN codes aim to:
- Provide distinct recognition to GI-tagged rice varieties such as Red Rice, Black Rice, and Kalanamak Rice.
- Help exporters in avoiding unnecessary trade barriers.
- Ensure that premium rice varieties receive fair pricing and global recognition.
What Are the Expected Benefits of These New HS Codes?
The introduction of specific HS codes for GI-recognized rice varieties is likely to bring multiple advantages, including:
- Better Market Positioning: Dedicated codes will help GI-tagged rice varieties stand out in global markets, ensuring better branding and competitive pricing.
- Easier Trade and Customs Clearance: New codes will simplify export documentation and reduce the chances of misclassification.
- Protection Against Export Restrictions: In case of trade bans or duty hikes on general rice categories, having specific HS codes will help ensure these specialty rice varieties are treated separately and protected from broad restrictions.
