Up to March 31, 2024, parboiled rice will be subject to a 20% export tax
The export tax on parboiled rice will now remain in place until March 31 due to a decision made by the Indian government on Friday, October 13.
Read more: NSO: Consumer Price Index (CPI) measured at 5.02% for the month of September
This export tax, which is set at 20% for parboiled rice and was initially enacted on August 25 with an expiration date of October 16, was put in place to guarantee a sufficient local rice supply and to regulate domestic prices.
This obligation has been extended by the finance ministry by a notification until March 31, 2024. India has now imposed limitations on all non-basmati rice types as a result of these restrictions.
About 25% of the nation's total rice exports are non-basmati white rice. The export of non-basmati white rice had previously been prohibited by the government in July in order to increase domestic supplies and control retail prices during the holiday season.
In September of the previous year, broken rice shipments were also outlawed. Notably, India exported over 15.54 lakh tonnes of non-basmati white rice in the first quarter of this fiscal year (April–June), a major rise from the 11.55 lakh tonnes in the same time of the previous year.
The export prohibition on non-basmati white rice was enacted as a result of rising food grain prices and increased export volumes. It's vital to note that India's annual retail or consumer price inflation inched down to 5.02% in September, the lowest level in three months.
Regarding exports of rice, India sent 45.6 lakh tonnes of basmati rice in the fiscal year 2022–2023 for a total export value of USD 4.8 billion.
Exports of non-basmati rice were 177.9 lakh tonnes and were valued at USD 6.36 billion in the most recent fiscal year. The output of rice in India has significantly increased, going from 129.47 million tonnes the year before to a projected 135.54 million tonnes in the crop year 2022–23, which runs from July to June.
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