Government extends export tax on parboiled rice by 20% through March 2024
Published on: October 13, 2023.
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Higher Duty on Parboiled Rice Export Continues
The Indian government has decided to extend the duty imposed on the export of parboiled rice until March 31 to ensure enough stock is kept in-house and domestic prices remain in control. This move comes as an extension to the initial 20 per cent export tax imposed from August 25 to October 16.
The finance ministry expanded the tax enforcement period through a recent notification, pushing it ahead until March 31, 2024.
Impact on Non-Basmati Rice
This decision means India has now laid restrictions on all non-basmati rice varieties. Non-basmati white rice, currently making up about 25 per cent of the country’s total rice exports, is a significant part of the nation’s rice export business.
In July, the government imposed the export ban on non-basmati white rice to increase domestic supply and regulate retail prices, particularly during the upcoming festive season. They also prohibited export of broken rice in September the previous year.
Rise in Export Volumes
Despite the bans, the April-June period this fiscal year saw the export of 15.54 lakh tonnes of non-basmati white rice. This figure was a significant increase from the 11.55 lakh tonnes exported during the same period the previous year.
The ban on non-basmati white rice exports was introduced amid rising foodgrain costs and increasing exports. Meanwhile, annual retail or consumer price inflation dropped to a three-month low of 5.02 per cent in September.
Revenue from Rice Exports
The total exports from India for basmati rice reached USD 4.8 billion in 2022-23. In terms of volume, 45.6 lakh tonnes were exported. Concurrently, non-basmati exports resulted in a revenue of USD 6.36 billion in the last fiscal year, with a total export volume of 177.9 lakh tonnes.
Increased Rice Production
According to data from the agriculture ministry, India’s rice production has seen a rise, estimated at 135.54 million tonnes in the 2022-23 crop year (July-June) compared to 129.47 million tonnes the previous year.
