New Delhi, Sep 8 (Agency) India has imposed a 20 per cent export duty on rice with effect from September 9, 2022 with industry insiders claiming that the decision has been taken considering price spiral due to likely fall in estimated production. “This notification shall come into force on the 09th of September, 2022,” said a Custom notification issued on Thursday.
As per the notification, a 20 per cent export duty would be levied on rice in the husk (paddy or rough), husked (brown) rice and semi-milled or wholly-milled rice, whether or not polished or glazed (other than parboiled rice and basmati rice). The move has come close on the heels of the government restricting export of wheat flour in the wake of rising prices. The government had earlier put a brake on export of wheat as prices of the key food grain started shooting up in international markets following military conflict between Russia and Ukraine. The conflict led to the global wheat supply chain disruptions increasing demand of Indian wheat. As a result, the price of wheat in the domestic market showed an increase. “This season paddy production could be less than expected. This could stoke price increase. The government’s decision is precautionary,” said an agriculture sector expert.