India continues export tax on parboiled rice
Published on: October 15, 2023.
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India Extends Parboiled Rice Export Tax
As per a recent government order, India – a country renowned for being the largest global exporter of rice – announced on Friday the extension of its export tax on parboiled rice. The extension guarantees the 20% duty to remain in effect until March of 2024. Rice exporters have been attentively monitoring these developments.
Impact on the Global Rice Market
Originally, the tax was bound to expire on October 15. According to a report from Reuters last Wednesday, the Indian government was contemplating the extension of this 20% duty on parboiled rice exports. This strategic move is likely to bring down shipments from the dominant rice exporters from Pakistan and further escalate global rice prices.
Rice Export Restrictions
This new extension follows an unexpected embargo on exports of the widely consumed non-basmati white broken rice that the Indian government issued in July. This directive was a sequel to a similar ban on 25% broken rice exports the previous year.
Effect on Global Food Prices
With India accounting for over 40% of world rice exports, any reduction in their exports can significantly impact global food prices. This, coupled with the fact that other exporting countries have low inventories, makes this a daunting prospect for global rice markets, including Pakistan rice exporters.
Source: brecorder.com
