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India imposes a 20 percent duty on the export of rice.
India has decided to extend the 20 percent duty on the export of parboiled rice in an effort to maintain a stable supply of rice in the domestic market and control prices. The central government of India announced that the export duty rate will continue until further notice.
This measure was initially introduced in August of the previous year to ensure sufficient local rice stocks and regulate prices within the country. Originally set to expire on October 16, 2023, the duty period was later extended to March 31, 2024. However, on Wednesday, it was disclosed that the 20 percent duty on rice exports will persist until new instructions are provided.
The decision comes amid a context where India’s retail inflation has eased to 5.10 percent from a four-month high of 5.69 percent recorded in December. Notably, data from India’s Ministry of Agriculture indicates a rise in rice production to 135.54 million tonnes in the 2022-2023 crop year, compared to 129.47 million tonnes in the previous year.
India holds a significant position in the global rice market, contributing over 40 percent of the world’s total rice exports. Any reduction in rice exports from India is likely to impact the global price of this essential food product.
