Representative image of rice grains being sifted in a paddy field in Kerala. India has withdrawn export tax on parboiled rice | Photo credit: KK Mustafah
The Union government has scrapped export tax on parboiled rice, an official decision said on Tuesday (October 22, 2024), as stocks across India – the world’s largest grain exporter – have soared and the country is on the verge of is about to produce a huge output. harvest after abundant monsoon rains.
The decision to abolish the tax follows last month’s decision to reduce the tax from 20% to 10% to boost exports.
Last month, the government also gave the green light to the resumption of exports of non-basmati milled rice. But New Delhi set a floor price for non-basmati milled rice exports at $490 per tonne.
Increased shipments of rice from India would increase overall global supply and soften international prices by forcing other major exporters – such as Pakistan, Thailand and Vietnam – to cut their tariffs, trade and industry officials said.
Confidence in the harvest of the new season
The decision to waive export tax on parboiled rice shows the government’s confidence in the new season’s crop, said Dev Garg, vice-president of the Indian Rice Exporters Association.
Duty-free exports of parboiled rice would encourage price-sensitive African buyers to increase their purchases from India, says BV Krishna Rao, chairman of the Rice Exporters’ Association.
India also removed the 10% export duty on husked brown rice and paddy fields, the order said.
Published – Oct 23, 2024 00:03 IST
