The Indian government announced the elimination of the export tax on parboiled rice, according to an official order on 22 October 2024. This decision comes as the country, the world’s largest grain exporter, experiences a surge in inventories and anticipates a robust harvest following ample monsoon rains. According to a global import export data provider, this move could significantly impact the import export data of India.
This latest decision to eliminate the tax follows a previous reduction from 20% to 10% made last month to stimulate exports. Additionally, India has recently approved the restart of non-basmati white rice exports, setting a minimum export price of $490 per metric ton.
Increased rice shipments from India are expected to enhance global supplies and lower international prices, potentially compelling other major exporters like Pakistan, Thailand, and Vietnam to adjust their rates, according to trade and industry officials. Analysis from import export data indicates that this shift may affect market dynamics.
Dev Garg, the vice president of the Indian Rice Exporters Association, said that getting rid of the export tax on parboiled rice shows that the government believes this year’s harvest will be good. B.V. Krishna Rao, the president of the Rice Exporters Association, added that allowing parboiled rice to be exported without taxes will likely attract buyers from Africa who are looking for better prices. This could lead to more rice being bought from India and improve India import export data.
The order also removes the 10% export duty on husked brown rice and rice paddy, which is expected to further stimulate trade and enhance the country’s position in global markets.
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