Indian Government extends 20% export duty on parboiled rice till March 31, 2024
According to an official statement, the national government of India has made the decision to continue charging an export duty of 20% on parboiled rice until the 31st of March in the year 2024. Rice that has been partly cooked with the husk still on it is referred to as parboiled rice.
20% Export Duty Extention on Parboiled Rice
Initially, this export duty was introduced on August 25, 2023, and it was set to expire on October 16, 2023. This move was aimed at ensuring an adequate domestic supply of rice and controlling its pricing.
Regulations on Rice Exports in India
In July, India amended its rice export norms by categorizing non-basmati white rice as "prohibited" for export. This shift changed the export policy for non-basmati white rice, which includes semi-milled or wholly milled rice, whether polished or glazed, from "free" to "prohibited." However, the government allowed exceptions, permitting exports based on government-to-government agreements to meet the food security requirements of other nations.
Some of the major importers of non-basmati rice from India include Benin in West Africa, Nepal, Bangladesh, China, Cote d'Ivoire, Togo, Senegal, Guinea, Vietnam, Djibouti, Madagascar, Cameroon, Somalia, Malaysia, Liberia, and the UAE.
Additional Safeguards on Basmati Rice Exports
In late August, India introduced additional safeguards to prevent the illegal export of non-basmati white rice, which had already been categorized as "prohibited" since July. The government received credible reports of misclassification and illegal exports of non-basmati white rice. It was reported that non-basmati white rice was being exported under HS codes for parboiled rice and basmati rice.
To prevent such misclassification, the government instructed the Agricultural and Processed Food Products Export Development Authority (APEDA) to introduce additional safeguards. Contracts for basmati rice exports with a value of USD 1,200 per tonne or higher would need to be registered to receive a Registration-cum-Allocation Certificate (RCAC). Contracts with a value below USD 1,200 per tonne could be evaluated by a committee set up by the Chairman of APEDA.
Changing Rice Export Policies
India has made several changes to its rice export policies over the past year. In September 2022, it banned the export of broken rice and imposed a 20% duty on exports of non-basmati rice, with the exception of parboiled rice. Concerns about overestimated low rice production as a result of a decline in the area under paddy cultivation led to these changes. However, India later lifted the ban on broken rice exports in November.
These shifts in rice export regulations aim to balance domestic supply, protect consumer interests, and respond to international demand while preventing illegal trade practices in the rice sector.