The government again imposed restrictions on the export of rice, imposed 20 percent export duty

The government is constantly making efforts to reduce inflation. In this list, now the government has imposed 20 percent tax on the export of boiled rice. Which will be applicable till the middle of October.

The government has imposed 20 percent export duty on the export of parboiled rice. This tax has been imposed to maintain local stock in the country and to keep domestic prices under control. The Finance Ministry said in the notification that the export duty imposed on August 25 will be effective till October 16, 2023.

Custom duty will not be levied on parboiled rice lying in ports which have not been given Late Export Order and are backed by valid LC i.e. Letter of Credit before August 25, 2023. With these restrictions, India has now banned all varieties of non-basmati rice. Non-basmati white rice accounts for about 25 per cent of the total rice exported from the country.

Ban was imposed on non-basmati last month

Last month, the government banned the export of non-basmati white rice to boost domestic supplies and keep retail prices under control during the upcoming festive season. In September last year, the export of broken rice was banned. About 15.54 lakh tonnes of non-basmati white rice was exported in the April-June period of the current financial year, as against only 11.55 lakh tonnes in the year-ago period. The ban on the export of non-basmati white rice was imposed due to increase in food grain prices and higher exports.

Inflation at the height of 15 months

Annual retail or consumer price inflation rose to a 15-month high of 7.44 per cent in July from 4.87 per cent in June amid a sharp rise in food prices. A week ago, India imposed 40 per cent export duty on onions to increase domestic availability.

Production of Parboiled Rice

In terms of value, India's total export of Basmati rice in 2022-23 stood at US $ 4.8 billion, while in terms of quantity it was 4.56 million tonnes. Non-basmati exports stood at US$ 6.36 billion in the last financial year. In terms of quantity, it was 177.9 lakh tonnes. India's rice production is estimated to increase to 135.54 million tonnes in the 2022-23 crop year (July-June), from 129.47 million tonnes in the previous year, according to agriculture ministry data.