Chennai: ‘White belly’ blamed as heavy duty hits idli rice exports

MADURAI: Rice mill owners exporting idli rice are in a spot after the Union government imposed regulations on foodgrain exports to curb food inflation. They say it has now been classified under raw rice due to its chalky white grain (white belly) that will attract 20% duty but that it is actually parboiled variety. Nearly 2,000 tonnes of the popular rice consumed by Tamils across the world is held up in Chennai and Tuticorin ports due to non-payment of the revised duty.
The Centre banned export of broken rice in September and imposed 20% duty on raw rice while there is no duty on parboiled rice. “Since it is boiled just once, it will have the chalky white grain material which is called white belly. Customs officials are categorising it as raw rice though it is parboiled. We have been trying to explain the difference to them but to no avail,” said Thangapandi Jeyaraman, a rice mill owner whose consignments are held up in Tuticorin port. The issue is likely to affect the kuruvai crop that has been under harvest since September 1.

White belly is an important characteristic of idli rice. But the local demand for it is less since local households use PDS rice in place of idli rice sold in the markets, says M Sivanandan, secretary of Tamil Nadu Rice Mill Owners Association. “Idli rice with white belly is meant only for making idli batter and can’t be used in regular cooking. Millers will not be in a position to pay the higher duty because the margin from it is very thin,” he said. Rice mill owners exporting the rice said they procured the first set of harvest from farmers who cultivate short term kuruvai crop. Since the exports are held up, they stopped procurement from October 1 and the grain will accumulate on the fields if the millers are not ready to buy.
R Arulpragasam, a farmer from Madurai cultivating the paddy for idli rice, says the problem will affect the farming community.