The Indian Rice Exporters Federation welcomed the Union Budget 2026, describing it as a forward-looking policy package that strengthens MSMEs, improves logistics efficiency and accelerates technology-led agriculture, all of which are critical to sustaining and expanding India’s rice exports.
In a statement issued following the Budget presentation, the Federation said the measures announced by the Union Government address long-standing structural challenges faced by rice traders, processors and exporters, most of whom operate within the MSME ecosystem. The Budget’s emphasis on liquidity, infrastructure and digital systems is expected to improve competitiveness across the rice value chain, from farm to port.
The Federation particularly welcomed the direction for central government procurement agencies to meet their procurement requirements through the Trade Receivables Discounting System for MSMEs. According to IREF, this step is expected to significantly improve payment discipline, shorten receivable cycles and enable faster access to lower-cost finance. For the rice sector, where working capital pressures are high and margins are sensitive to payment delays, the move is expected to provide immediate operational relief and enhance financial stability for exporters and millers.
The Budget’s focus on strengthening logistics infrastructure was also highlighted as a major positive. The announcement of dedicated freight corridor connectivity extending to Surat is expected to reduce transportation costs and improve the reliability of export shipments. IREF noted that improved rail connectivity to western ports such as Kandla and Mundra would benefit exporters across northern and central India by enabling faster cargo movement, reducing congestion and improving turnaround times. These efficiencies are expected to translate into better price realisation and improved competitiveness in global markets.
On the agriculture and technology front, the Federation welcomed the launch of the Bharat Vistar system, which integrates digital public infrastructure with artificial intelligence-enabled solutions to enhance farm productivity. IREF said the initiative has particular relevance for India’s portfolio of GI-tagged and high-value rice varieties, as it can support better aggregation, traceability and quality consistency. Improved data-driven farming practices under Bharat Vistar are expected to contribute to higher yields, reduced variability and stronger alignment with international quality standards.
The Federation said that technology-led interventions announced in the Budget can also strengthen linkages between farmers, processors and exporters, enabling more efficient supply chains and greater transparency. This, in turn, can enhance India’s reputation as a reliable supplier of high-quality rice in global markets.
Overall, the Indian Rice Exporters Federation said the Union Budget 2026 provides a timely and coordinated boost to the rice sector by addressing finance, infrastructure and productivity together. The Federation expressed confidence that effective and timely implementation of the announced measures will support farmers, MSMEs and exporters, while reinforcing India’s leadership in the global rice trade.
