India Reduces Export Duty on Rice to Boost Shipments

The Indian government has reduced the export duty on parboiled rice from 20% to 10% to ease inventory pressure and boost shipments. This reduction coincides with an upcoming harvest and aims to lower export prices, compelling competing countries to adjust their pricing. The reductions also apply to brown and husked rice. The export duty on white rice is now zero.

In a bid to manage surplus stock and enhance export potential, India has reduced its export duty on parboiled rice to 10% from the previous 20%, as per a government notification issued on Friday. This strategic move comes as the world's top rice exporter gears up for a new harvest.

The reduction in export duty aims to make Indian rice more competitive globally, pushing other major producers like Thailand, Vietnam, Pakistan, and Myanmar to reconsider their pricing strategies. India had initially imposed the 20% duty earlier this year due to insufficient rainfall impacting crop yield.

Additionally, the export duty on brown and husked rice has also been reduced to 10%, with the duty on white rice now entirely removed. The government has not yet clarified if private traders will benefit or if the trade will be limited to government deals. The Food Corporation of India's rice stock was notably higher as of Sept. 1, providing a buffer for easing export restrictions.

(With inputs from agencies.)