India imposed a 20 per cent export duty on non-Basmati rice except for parboiled rice to boost domestic supplies amid a fall in area under the paddy crop in the current Kharif season. According to a notification by the revenue department, an export duty of 20 per cent has been imposed on 'rice in husk (paddy or rough)' and 'husked (brown) rice'.
The Central Board of Indirect Taxes & Customs further said the export of 'semi-milled or wholly-milled rice, whether or not polished or glazed (other than Parboiled rice and Basmati rice)' will also attract a customs duty of 20 per cent. This has already come into force from September 9, 2022.
India, the world's second-largest rice producer after China, garners a 40 per cent share in the global trade. The country exported 21.2 million tonnes of rice in the 2021-22 fiscal year, of which 3.94 million tonnes were Basmati rice. The All-India Rice Exporters Association president Nathi Ram Gupta said the export of raw rice from southern parts of the country would be impacted, but shipments of parboiled may go up. Paddy is the main Kharif crop, sowing of which begins with the onset of the southwest monsoon in June and harvesting starts from October onwards. Rice production rose to a record 130.29 million tonnes in the last crop year as against 124.37 million tonnes in 2020-21. The government has already restricted exports of wheat.