Centre imposes 20% export duty on parboiled rice amid soaring prices
The government has imposed a 20% export duty on parboiled rice on Friday and it will be in effect immediately until October 26, 2023.
New Delhi: To ensure a steady supply of rice within India and curb rising prices, the government has imposed a 20 percent export duty on parboiled rice. The Ministry of Finance announced this measure on Friday, August 25, and it will be in effect immediately, lasting until October 16, 2023.
However, the government has also provided some relief. Shipments of parboiled rice that are currently held at customs ports without “let export order” (LEO) approval, but supported by valid “letters of credit” (LCs) issued before August 25, 2023, will be exempt from this export duty.
This decision now places restrictions on all types of non-basmati rice exports, which make up about a quarter of India’s total rice exports.
This move follows a ban on the export of non-basmati white rice implemented in July 2023 to stabilize the domestic rice market. Additionally, Food Secretary Sanjeev Chopra recently announced that India has released an additional two lakh metric tonnes (LMT) of rice into the market to control prices.
Similarly, the Indian government has recently introduced a 40 percent export duty on onions to boost domestic availability.
Data from the first quarter of this fiscal year showed a significant increase in non-basmati white rice exports, rising to 15.54 lakh tonnes from 11.55 lakh tonnes during the same period last year. This surge in exports influenced the decision to impose restrictions to manage the rising prices of this essential food item.
