The central government has now imposed 20 percent export duty on this rice, know what will happen to the people

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Dt. 26 August 2023, Saturday

"India has imposed a 20 percent duty on exports of boiled rice with immediate effect. India's move could raise global rice prices. Rice in other countries has touched its highest level in 12 years. India accounts for more than 40% of world rice exports and other exporters Low stocks mean that any cut in shipments, caused by Russia's invasion of Ukraine last year and erratic weather, could drive up food prices.The government has taken this step to provide relief to Indians.

India shocked buyers by banning exports of the more widely consumed non-basmati white rice last year, following a ban on bulk rice exports last year. A Mumbai-based dealer at a foreign trade house said the ban had prompted some buyers to increase purchases of rice, pushing prices to record highs.

It will become as expensive as Thailand and Pakistan

With this duty, Indian boiled rice will become as expensive as supplies from Thailand and Pakistan, the dealer said. Now there is hardly any option for buyers. India exports 7.4 million tonnes of parboiled rice in 2022. The UN Food Agency's rice price index hit its highest level in nearly 12 years in July as prices rose on strong demand in major exporting countries after India banned exports.

The price is likely to rise again

A global trading house dealer said that India has now banned all types of non-basmati rice, which is preferred by consumers especially in poorer countries in Africa and Asia. The dealer further said that global rice prices had started to fall in the last few days after increasing by more than 25 percent due to India's ban last month, but now prices are likely to rise again.

Tightening on rice, wheat and sugar exports

The recent ban on exports of food items shows the sensitivity of Prime Minister Narendra Modi's government to food inflation ahead of general elections due almost next year. After restricting rice exports, the government has extended the ban on wheat exports till September 2022. Export of sugar has also been banned this year due to reduced sugarcane production.