Informist, Saturday, Sep 28, 2024

MUMBAI – The government has reduced the export duty on parboiled rice to 10% from the earlier 20%, the finance ministry said in a notification released late Friday. "This notification shall come into force with immediate effect," the release said.

The government in August 2023 had imposed a 20% duty on the export of parboiled rice to ensure adequate local stock and keep domestic prices in check. The duty was to be levied till Mar 31, but in February the government said the duty would continue until further notice.

The government on Friday also allowed the export of non-basmati white rice, which was earlier banned due to rising domestic prices. It has also imposed a 10% duty on export of both paddy and brown rice.

In July 2023, the government had prohibited the export of non-basmati white rice due to concerns over lower paddy acreage and to control soaring rice prices. However, in December, it allowed exports of non-basmati white rice to some African countries. After the export ban was imposed on broken variety and non-basmati white rice in September 2022 and July 2023, respectively, India has supplied white rice to a few countries to meet their food security needs based on requests from their governments.

Earlier this month, the government had scrapped the minimum export price of $950 per tn on basmati rice shipments. The move to relax rice exports comes at a time when rice stocks with the Food Corp of India are at a 20-year-high. Moreover, above-normal rainfall during the ongoing kharif season has led to higher-than-normal paddy acreage, which has boosted hopes for better production this year. The area under paddy was at 41.35 mln ha as of Monday, up 2.2% from a year ago and exceeding the normal acreage of 40.16 mln ha for the season, data from the agriculture ministry showed. End

US$1 = 83.70 rupees

Reported by J. Navya Sruthi

Edited by Tanima Banerjee

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