India extends curbs on rice exports with 20% duty on parboiled variety

India has imposed a 20% export duty on parboiled rice, following earlier bans on non-basmati white rice and broken rice exports due to rising prices. The finance ministry’s immediate implementation of the duty was announced, but exporters with prior contracts can export at zero duty until October 15.

The duty’s official start date is October 16, with exemptions for goods already in customs stations or backed by specific conditions.

The move aims to stabilize domestic rice prices and bolster inventory to counter inflation. Parboiled rice prices have risen by 19% domestically and 26% internationally since April. The ban triggered a 21% rise in export quantity and over 35% in value.

The ban’s impact has been felt by disadvantaged populations in countries like Bangladesh and Nepal, relying on Indian white rice. African nations including Benin, Senegal, Togo, and Mali, which import broken rice, have also been affected.

The export ban led to a 15-25% surge in global rice prices, prompting West African nations to shift to Indian parboiled rice. India’s exports rose to around 3.1 million metric tons in the current fiscal year from 2.58 million metric tons in the previous year.

Retail rice inflation rose to 12.96% in July from 12% in June and 4.3% in July 2022. India’s all-India average retail parboiled rice is priced at ₹37-38 per kg and ₹92-93 for basmati rice.

This dynamic has led to a discernible uptick in India’s parboiled rice exports during the current fiscal period, amounting to approximately 3.1 million metric tons compared to the 2.58 million metric tons recorded during the same period in the previous fiscal year, as indicated by government data.