India Extends 20% Export Duty on Parboiled Rice till March 31 Next Year
Delhi, October 13, 2023 - The Indian government has announced an extension of the 20% export duty on parboiled rice, initially set to expire on October 16, until March 31, 2024. This move aims to maintain an adequate local rice supply and control domestic prices during the festive season and beyond.
The decision to extend the export duty on parboiled rice was revealed by the Finance Ministry through an official notification. India had originally imposed the 20% export duty on this type of rice on August 25 as part of its strategy to ensure food security and stabilize the domestic market.
This extension effectively places restrictions on the export of all non-basmati rice varieties, impacting approximately 25% of the country's total rice exports. In an earlier effort to boost domestic rice supply, the government banned the export of non-basmati white rice in July and, a year ago, prohibited exports of broken rice.
The ban on non-basmati white rice exports was prompted by escalating food grain prices and higher export volumes. During the first quarter of the current fiscal year (April-June), India exported approximately 15.54 lakh tonnes of non-basmati white rice, a substantial increase compared to the 11.55 lakh tonnes exported during the same period the previous year.
India's annual retail or consumer price inflation for September hit a three-month low of 5.02%, signaling the government's commitment to managing inflation and ensuring affordable food prices for its citizens.
In terms of rice exports, India's basmati rice exports for the 2022-23 fiscal year reached a total value of USD 4.8 billion, accompanied by a volume of 45.6 lakh tonnes. Non-basmati rice exports for the same period were valued at USD 6.36 billion, with a total volume of 177.9 lakh tonnes.
Data from the Ministry of Agriculture indicates a substantial increase in India's rice production. Rice production has risen from 129.47 million tonnes in the previous year to an estimated 135.54 million tonnes in the 2022-23 crop year, spanning from July to June. This uptick in production bodes well for the country's efforts to maintain food security and control prices, especially during the festive season.
The government's decision to extend the export duty on parboiled rice underscores its commitment to striking a balance between international trade and domestic food security, particularly in light of inflation concerns and the need to ensure a stable supply of essential commodities for its citizens.