India abolishes export tax on parboiled rice: a significant impact is expected on international markets

India’s steps to boost export market

Last month, India cut the tariff from 20% to 10% and allowed exports of non-basmati white rice with a minimum price of $490 per tonne. According to experts, if a high yield is still expected due to favorable weather, the government may even abolish this minimum price. This measure would further increase global rice supply, easing international prices and stabilizing supply on the world market. According to Dev Garg, vice-president of the Rice Exporters Association of India, the removal of the export tax shows the government’s confidence in this year’s crop.

Effects of parboiled rice exports

Parboiled rice exports in India fell by 13% to 5.1 million tonnes in the first eight months of 2024, a major decline. B.V. Krishna Rao, president of the Rice Exporters’ Association, believes that the duty exemption could encourage price-sensitive African buyers in particular to increase their purchases. Removing the export duty could improve India’s competitiveness in this market, contributing to stable prices and increasing demand for Indian rice.