Government exempts parboiled and husked brown rice from export duty

The government has announced a duty exemption for parboiled and husked brown rice, reducing export duty to nil effective from October 22. The move aims to boost rice exports and stabilise global prices, with the Election Commission's approval ensuring no political advantage.

The government has announced the exemption of parboiled rice and husked (brown) rice from export duty, bringing significant relief to exporters. In a notification issued late on Tuesday by the finance ministry, it was confirmed that the export duty on these rice varieties has been reduced from 10 per cent to zero, effective from October 22. This move comes after the government previously cut export duty from 20 per cent to 10 per cent last month. According to PTI, the Election Commission's clearance was obtained for this decision, with the condition that no political mileage is drawn from the announcement.

Both Jharkhand and Maharashtra are due for assembly elections next month, making the timing of this announcement significant. However, the government has ensured that the policy change remains neutral in terms of electoral impact.

Last month, the government also exempted non-basmati white rice from export duty, alongside reducing levies on other rice varieties, including parboiled and husked brown rice. These steps are aimed at encouraging exports and supporting the agricultural sector. Additionally, the government scrapped the minimum export price (MEP) on basmati rice to boost outbound shipments, further enhancing farmers' income and contributing to overall economic growth.

Trade experts and industry leaders have welcomed the decision. Dev Garg, vice-president of the Indian Rice Exporters Association, said the removal of export tax on parboiled rice reflects the government's confidence in the new season's crop. He believes this step will encourage Indian rice exporters to expand their market share, especially in price-sensitive regions such as Africa.

B.V. Krishna Rao, president of the Rice Exporters' Association, noted that the duty-free status for parboiled rice will attract more buyers from countries in Africa, which rely heavily on affordable rice imports. This move is also expected to soften international prices as India increases its export volumes, forcing competitors like Pakistan, Thailand, and Vietnam to adjust their prices.

Industry analysts have pointed out that increased rice exports from India, the world’s largest rice exporter, will help stabilise global rice supplies and ease price pressures in the international market.

By facilitating larger shipments, India stands to benefit economically while ensuring that its surplus production helps stabilise global food markets, offering relief to import-dependent nations. According to PTI, these strategic decisions underline the government’s commitment to enhancing agricultural exports and providing support to farmers, which remains a key focus area ahead of the upcoming polls.

(With inputs from PTI)

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