 "India slashes rice export duties to boost shipments, as bumper harvests promise lower prices and renewed access to global markets.")
India has reduced the export duty on parboiled rice from 20% to 10% due to rising inventories and an upcoming harvest. This change will make Indian rice more competitive globally, potentially driving prices down in countries like Thailand and Vietnam. The export duty for brown rice and husked rice has also been cut to 10%, while white rice will see a duty of zero, although it’s unclear if only government deals will be allowed. This decision comes after a year of high rice stocks, with the Food Corporation of India holding 32.3 million metric tons as of September 1, 2024, significantly higher than last year. Enhanced rainfall has encouraged farmers to increase their rice planting efforts, contributing to this surplus.
India has made significant changes to its rice export duties, reducing the export tax on parboiled rice from 20% to 10%. This decision comes as the country prepares for a new rice harvest, and inventories are at a record high. The lower duty is expected to decrease India’s export prices, boosting shipments and compelling competitor countries like Thailand, Vietnam, Pakistan, and Myanmar to lower their prices as well.
Additionally, the Indian government has also cut the export duty on brown rice and husked rice to 10%. For white rice, the duty has been reduced to zero, but it’s still uncertain if private traders can export it or if it will only be allowed through government channels.
Earlier, in response to unfavorable weather conditions that impacted rice crops, the government had set a 20% duty on parboiled rice exports. However, with rice stocks at the Food Corporation of India reaching 32.3 million metric tons as of September 1, a figure 38.6% higher than last year, authorities feel they have enough supply to ease export regulations.
The recent heavy monsoon rains have encouraged farmers to plant rice over 41.35 million hectares this year, marking an increase from the previous year’s 40.45 million hectares. These regulatory changes aim to support farmers and enhance India’s presence in lucrative overseas markets, particularly in Europe, the Middle East, and the United States.
Stay tuned for more updates as this developing situation unfolds.
Tags: India Rice Export, Rice Duty Reduction, Parboiled Rice, Rice Harvest 2024, Food Corporation of India, Agriculture News
What is the new export duty on parboiled rice?
The new export duty on parboiled rice is now 10%, down from 20%.
Why did the government reduce the export duty?
The government reduced the export duty to help boost rice exports and support farmers.
How will this change affect rice prices?
Lower export duty may lead to increased demand for rice in the international Market, possibly stabilizing or lowering prices for consumers.
When will this new duty rate take effect?
The new duty rate is effective immediately from the date of the government order.
Who benefits from this reduction in export duty?
Farmers and exporters will benefit from the lower export duty as it can lead to higher sales and better prices for their rice.
