The Indian government on Tuesday announced that it is cutting down the export tax on parboiled rice in an attempt to boost exports. The authorities said the tax is being slashed to zero.
This decision has been taken as the production of the grain surged in India, reported Moneycontrol. This has helped boost inventories of the commodity for the country, which is also the biggest exporter globally.
Abundant monsoon rains have resulted in a bumper crop in the country. This tax rate earlier stood at 10 per cent. Notably, the Centre last month announced that it is cutting down the tax from 20 per cent to 10 per cent to help enhance exports. The authorities also cut down the 10 per cent export duty levied on husked brown rice and rice paddy.
Earlier in September, the government allowed exporters to resume trading non-basmati white rice. However, the authorities fixed a floor price for the commodity’s exports at $49- per metric tonne.
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Industry executives noted that an increase in rice shipments from India would add to the overall supply globally. This will result in international prices ease up and force major exporters such as Vietnam, Pakistan, and Thailand to cut down on their rates in the global market.
The report quoted Dev Garg, Vice President, the Indian Rice Exporters Association, and noted, “The decision to remove the export tax on parboiled rice signals the government's confidence about the new season crop.”
B V Krishna Rao, President, the Rice Exporters’ Association, added, “Duty-free exports of parboiled rice would encourage price-sensitive African buyers to step up purchases from India.” The export duty was imposed back in 2023 after the production suffered due to below-normal rainfall.