Centre slaps 20 per cent export duty on parboiled rice to check price rise

India exported 17.78 million tonnes (mt) of non-basmati rice, out of which 7.84 mt was parboiled rice, in 2022-23.

Published: 27th August 2023 08:37 AM  |   Last Updated: 27th August 2023 08:37 AM   |  A+A-

Nadavayal, rice

For representational purposes

NEW DELHI: The government on Saturday imposed a 20% duty on the export of parboiled rice in order to check rising prices and ensure its availability in the domestic market. The ban comes into effect immediately, according to the finance ministry’s revenue department. 

Rising domestic prices of rice in an election year is a cause for concern for the government. India is the largest exporter of parboiled rice with a market share of more than 40%. Parboiled and basmati constitute a major chunk of rice exports from India.

India exported 17.78 million tonnes (mt) of non-basmati rice, out of which 7.84 mt was parboiled rice, in 2022-23.

According to the Department of Consumer Affairs, there has been an increase of over 10% in the prices of rice in the past year and over 2% last month.

Rising international prices due to geopolitical situations and extreme climatic conditions in other rice-producing countries led to lesser production. Also, El Nino weather events, which are associated with a weaker monsoon and higher temperature in India, triggered speculation of an adverse impact on production and have led to an increase of prices in domestic prices.

India experienced 6% surplus rainfall by July-end, thus helping farmers to sow paddy. But after the end of August, the total countrywide rainfall deficit had reached 7%, triggering concern among policymakers.

In July, the government had banned exports of non-basmati rice. The government said the higher price in the international market led to an increase in exports. In September 2022, the government imposed a 20% export duty to lower the price of domestic availability.

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