Government Removes Export Tax on Parboiled Rice

New Delhi, Oct 23 (KNN) The Indian government has removed the export tax on parboiled rice, as announced in an official order on Tuesday, signalling confidence in the country’s abundant rice production following favourable monsoon rains.

This move comes just weeks after the government reduced the duty on parboiled rice from 20 per cent to 10 per cent, aiming to stimulate exports from the world’s largest rice exporter.

India’s recent policy shifts in the rice sector have sought to balance domestic food security with global trade interests. Last month, the government permitted exports of non-basmati white rice but set a minimum export price of USD 490 per metric ton to prevent excessive outflows and control inflationary pressures at home.

India’s re-entry into the global market with larger shipments is expected to ease international rice prices, which have been under pressure in recent months.

"The removal of the parboiled rice tax reflects the government's confidence in a strong new harvest," said Dev Garg, vice-president of the Indian Rice Exporters Association.

With India’s improved supply position, competitors like Pakistan, Thailand, and Vietnam may be forced to lower their prices to remain competitive.

The removal of duties is expected to benefit price-sensitive buyers, especially in Africa, where Indian parboiled rice has traditionally found strong demand. "The duty-free export will encourage African nations to increase purchases from India," said B.V. Krishna Rao, president of the Rice Exporters’ Association.

In addition to parboiled rice, the government has also eliminated the 10 per cent export duty on husked brown rice and paddy, further signaling its optimism about domestic inventories and harvest forecasts.

The policy adjustments reflect India’s dual strategy of maintaining sufficient domestic supplies while supporting its agricultural export sector.

With inventories high and a bumper crop expected, the measures will help Indian rice exporters regain lost ground in international markets after earlier export restrictions caused disruptions.

(KNN Bureau)