India Restricts Rice Exports

India has raised export tariffs on rice and shut off exports of broken rice entirely, in a move that will probably raise global rice prices.

India, the world’s leading rice exporter, announced earlier this month that it will start charging a 20% duty on exported white and brown rice. In addition, exports of broken rice, a cheaper grade that is often used for commodities like rice flour, have been shut off entirely. Exports of basami and parboiled rice will be unaffected.

India’s exports represent some 40% of the global rice trade, according to exporters cited by the Wall Street Journal. Authorities characterized the measure as a reaction to the prospect of poor rice crops due to heat and other weather problems, necessary to ensure the country’s domestic food supply.

India restricted exports of wheat and sugar in May, citing similar concerns.

Date: 13-Sep-2022