13-India Plans to Extend Duty on Parboiled Rice Exports

1. India Plans to Extend Duty on Parboiled Rice Exports India Plans to Extend Duty on Parboiled Rice Exports In a recent development, India has decided to extend the 20% duty on exports of parboiled rice until March 2024, according to information provided by a government official. This decision is set to have significant implications on the global rice market, as India is the largest exporter of this essential grain. Duty Extension Ai Duty Extension Aims to Bolster Domestic Reserves ms to Bolster Domestic Reserves Initially imposed in August, the 20% duty on parboiled rice exports was expected to expire on October 15. However, the decision to extend it is rooted in a desire to limit rice exports and enable the government to procure more rice from farmers. The primary objective behind this move is to maintain low rice prices, a vital aspect of the government's strategy, especially in the lead-up to general elections. A dealer based in New Delhi, representing a global trade house, emphasised the government's commitment to ensuring affordable rice prices for its citizens. By imposing export duties, the government can secure more rice and distribute it to the underprivileged sections of society. Political and Regional Context Political and Regional Context The timing of this extension is significant, with five Indian states set to elect new legislatures next month. This marks the commencement of regional polls ahead of the scheduled general elections next year. To garner public support, the government is making efforts to keep food prices in check. Expo Export Bans and Global Implications rt Bans and Global Implications India previously imposed export bans on widely consumed non-basmati white rice in July, following a ban on broken rice exports the previous year. These bans have far-reaching consequences, as India plays a pivotal role in the global rice market. It accounts for over 40% of the world's rice exports. Any

2. reduction in Indian rice shipments can lead to inflation in food prices, especially since many exporting countries already have low rice inventories Local and Internation Local and International Rice Prices Despite the export restrictions, rice prices in the domestic market remain almost 13% higher compared to the previous year, as per government data. Overseas buyers have been cautious in making purchases recently, anticipating that the government might allow duty-free exports again after October 15. al Rice Prices According to B.V. Krishna Rao, president of the Rice Exporters Association (REA), once the government formally announces the extension of export duty, overseas buyers are likely to resume purchases. Even with the 20% duty, Indian parboiled rice remains a cost-effective option compared to rice from other major exporters like Thailand. In 2022, India exported a substantial 7.4 million tons of parboiled rice. This statistic underscores the importance of India in the global rice trade and highlights how policy decisions in the country can have a significant impact on international food prices. In Conclusion In Conclusion India's extension of the 20% duty on parboiled rice exporter is a strategic move aimed at maintaining low rice prices domestically and bolstering its own food reserves. However, the decision also has consequences for the global rice market, given India's prominent role as the largest rice exporter. The impact of this extension will likely be felt by consumers and food markets worldwide. Tradologie.com offers the best platform for your needs if you're an exporter of agro commodities like rice, wheat and barley looking to buy commodities in bulk or an exporter of agro commodities like rice, wheat and barley looking to export grains in bulk. With the help of Tradologie.com, bulk grain trade is possible for all types. Tradologie.com platform makes it possible for customers to purchase rice, wheat, and spices, among other high-quality agricultural products, at flexible prices. Tradologie.com is a digital platform that connects buyers and sellers of bulk agro commodities across the globe. With the use of technology, Tradologie.com ensures seamless transactions between agro- exporters and importers. With 70,000+ verified suppliers from more than 100 countries and 600,000+ verified buyers worldwide, Tradologie.com is expanding quickly. If you want to register as a buyer, click here, If you want to register as a seller, click here. To stay updated about the latest developments in the agro-trading sector, follow Tradologie.com on all social media platforms.