In a significant move, the Indian government has reduced the export duty on parboiled rice from 20 percent to 10 percent. This decision comes a year after the Centre imposed a 20 percent duty on rice exports, amid concerns over a potential shortage in domestic production.
The reduction in export duty follows a year of below-average rainfall in 2023, which affected agricultural output. As a result, the government had extended the 20 percent export duty on parboiled rice until March 31, 2024, in an attempt to stabilize the market.
Formation of Rice Federation Consulting Committee
In July, the government established the Rice Federation Consulting Committee, led by the Ministry of Commerce. The committee’s primary focus is to address issues surrounding rice exports and provide recommendations on how to maintain a balanced export policy.
Earlier in September, the Centre lifted the floor price for basmati rice exports, a move expected to increase demand from regions such as Europe, the Americas, and the Middle East, according to a Reuters report. Exporters anticipate that this step will strengthen India's position as the world’s largest rice exporter, potentially boosting its share of the global rice market.
Inflation and Food Price Concerns
India’s retail inflation climbed to 3.65 percent in August, up from a five-year low of 3.54 percent, as reported by the Ministry of Statistics & Programme Implementation. The rise in inflation comes amidst growing concerns about food prices.
During the Reserve Bank of India’s Monetary Policy Meeting in August, RBI Governor Shaktikanta Das expressed concern over the trajectory of food inflation. He cautioned that headline inflation could see a further increase if food price inflation is not kept in check.
With inputs from agencies
Image Source: Multiple agencies
© Copyright 2024. All Rights Reserved Powered by Vygr Media.
