India has imposed restrictions on all varieties on non-basmati rice. Non-basmati white rice constitutes about 25% of the total rice exported from the country.

The government had imposed the duty on the export of parboiled rice to ensure adequate local stock and keep domestic prices under check.

India, the world’s top rice shipper, may extend an export tax on the parboiled variety as part of efforts to ease food inflation ahead of the Lok Sabha elections. The move could keep world supply tight and send prices to new peaks, said a Bloomberg report.

Prime Minister Narendra Modi, who is seeking a third term in the polls due in the first half of this year, is considering keeping the export levy at 20%, the report added. There is no immediate proposal to ban exports of parboiled rice. The tax was due to expire March 31.

The government had imposed the duty on the export of parboiled rice to ensure adequate local stock and keep domestic prices under check.

The export duty, imposed on August 25, will remain effective till October 16, 2023, the Finance Ministry said in a notification.

India has imposed restrictions on all varieties on non-basmati rice. Non-basmati white rice constitutes about 25% of the total rice exported from the country.

India’s total exports of basmati rice stood at $4.8 billion in 2022-23 in terms of price, while in volume terms it was at 45.6 lakh tonnes. In her Budget speech, Finance Minister Nirmala Sitharaman said inflation has come down within the tolerance band as a result of the steps taken by the government to check price rise, especially in perishable commodities. India’s retail inflation has declined from an average of 6.8 per cent in April-December 2022 to 5.5 per cent in the corresponding period of 2023. The retail inflation is now stable and within the notified tolerance band of 2 per cent to 6 per cent.

Published Date: February 7, 2024