Centre considers proposals to lift export duty on rice, decision likely soon
India imposed a 20 percent duty on shipments of white and brown rice in September, and banned broken rice sales abroad. The curbs, which apply to about 60 percent of Indian rice exports, came on top of restrictions on wheat and sugar sales, which too are being reviewed.
The government is reviewing its position on export duty on white and brown rice. Sources told CNBC-TV18 that the central government is considering proposals to lift export duty on rice, and the decision could be taken soon. This is in light of the fact that domestic prices are stable and there are adequate stocks to meet domestic demand and welfare schemes. Further, the government is also reviewing export curbs on wheat and sugar, added the sources.
Rice exporters have met officials from the commerce and food ministries. They are seeking the removal of the 20 percent duty on brown and white rice exports as domestic stocks of rice appear to be stable. Sources added that the exporters are seeking approval to ship at least one million tonnes of broken rice till 2023.
According to the exporters, they could suffer a loss of Rs 6,500 crore if the duties are not lifted.
India imposed a 20 percent duty on shipments of white and brown rice in September, and banned broken rice sales abroad. The curbs, which apply to about 60 percent of Indian rice exports, came on top of restrictions on wheat and sugar sales.
India accounts for around 40 percent of the global rice trade. Any relaxation of the export curbs will likely cool benchmark prices in Asia, which are trading near the highest since mid-2021. The move is being discussed as concerns over food inflation have eased. Global food costs ended 2022 roughly where they started despite a year of disruptions from the war in Ukraine and extreme weather.
(Edited by : Shoma Bhattacharjee)
First Published: Jan 10, 2023 6:40 PM IST
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