In a big flow aimed at regulating rice exports and ensuring local food safety, the Ministry of Finance has imposed a 20% export duty on parboiled rice and some other types of milled rice sorts. The export duty comes into impact today from 1 May 1.
Per the round issued by the ministry, export duty covers parboiled rice, each GI recognized & different types and “Other Rice” under specific customs classifications, along with semi-milled or milled rice, whether or not polished or glazed.
20% export duty Imposed on parboiled rice
Earlier in October last year, the government eliminated all the curbs on rice exports that had been in force since September 2022, even though it decided to retain the ban on exports of damaged rice. In hours of decreasing the Customs duty on parboiled rice to 0 from 10 %, it scrapped the $490 per tonne minimum export price (MEP) on white rice. It determined after decision at a inter-ministerial meeting. It required so as to ease the trouble of warehouses in Haryana and Punjab overflowing with rice stock.
Government effort to deal with food inflation
India had to begin with started to minimize exports of rice in September 2022 whilst it banned the shipments of damaged rice. It had then imposed 20% export duty on white rice as a measure taken as part of the authorities’ efforts to tackle food inflation.
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