Interestingly, though the tax spells doom for Haryana millers, they are unlikely to gain support from the exporters who buy from them . In fact, the All India Rice Exporters Association has yet to take up the issue. The executive director, Mr Adlakha, was unavailable for comment. All major basmati exporters have significantly expanded capacities over the last few years to take advantage of a booming international market. But returns on investment have been poor till now because their prices are undercut by smaller millers.
Most small millers do their paddy procurement off the books.
Consequently, they pay less tax and are able to sell milled rice in the open market at Rs.