Confusion over duty calculations hampers Indian parboiled rice exports, dealers claim
Published on: March 8, 2024.
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Indian Rice Exporters Face Challenges from New Customs Duty Calculation Method
Indian rice exporters are experiencing difficulties in signing new contracts for the export of parboiled rice following a change in the calculation method for the 20% export duty, according to four industry officials. The change, which requires a duty on the transactional value rather than the Free on Board (FOB) value, has resulted in higher costs for exporters. The Rice Exporters Association has requested clarification from the government regarding the new calculations. The confusion and higher costs have slowed down parboiled rice exports, with prices reaching a record high of $560, including duty. This translates to a customs duty of over 24%. Despite the challenges, India continues to ship approximately 500,000 metric tons of parboiled rice per month, targeting African countries such as Benin, Djibouti, Guinea, Liberia, and Togo. Exporters are urging the government to implement a flat duty of around $100 per ton to eliminate confusion and stabilize costs.
Source: [Yahoo Finance](https://uk.finance.yahoo.com)
