A 20% export duty on parboiled and milled rice kicks in May 1, 2025, as India aims to secure food stocks and regulate rice trade amid inflation worries.

The Ministry of Finance has imposed a 20 per cent export duty on parboiled rice and specific milled rice varieties, with the new rule taking effect from May 1. The decision is aimed at regulating rice exports and ensuring domestic food security, according to a Financial Express report. 

According to the circular issued by the ministry, the export duty applies to parboiled rice—including GI-recognised and other varieties—and “Other Rice” under specific customs classifications. This includes semi-milled or wholly milled rice, whether or not polished or glazed. 

This move comes months after the government had eased earlier restrictions. In October 2023, it lifted most export curbs that had been in place since September 2022, while continuing the ban on broken rice exports. On the same day, it slashed the Customs duty on parboiled rice from 10 per cent to zero, and also removed the $490 per tonne Minimum Export Price (MEP) on white rice. These changes were approved following a high-level inter-ministerial meeting.

The changes were introduced to ease pressure on warehouses in Haryana and Punjab, which were reportedly overflowing with rice stocks at the time. 

India had first moved to restrict rice exports in September 2022 by banning the export of broken rice. This was followed by the imposition of a 20 per cent duty on white rice exports, part of a broader strategy to contain food inflation and maintain sufficient domestic supply. 

The fresh export duty is expected to help the government better manage foodgrain availability at home, while addressing concerns around global supply volatility.

Published Date: May 2, 2025