India Imposes Massive Duty on Rice Exports

India has imposed a 20% duty on parboiled rice exports which will exert further strain on the world’s leading rice exporter. This could potentially trigger an uptick in global rice prices which are already hovering around their highest levels in nearly 15 years.

The move follows India’s sudden prohibition on the export of widely consumed non-basmati white rice. Buyers responded to this embargo by increasing purchases of parboiled rice, leading to record-high prices. The ban also resulted in increased demand for Pakistani rice with experts predicting Pakistan’s rice exports to peak at $3 billion.

India dispatched 7.4 million tons of parboiled rice in 2022. The reverberations of India’s export limitations are evident as prices in key exporting countries experienced a spike due to heightened demand following India’s export restrictions.

India’s significance in the global rice landscape cannot be understated, accounting for over 40% of exports. Coupled with dwindling inventories from other exporters, any further decline in shipments from India could amplify food prices, already influenced by factors like Russia’s incursion into Ukraine and erratic weather conditions.

“The move will equalize prices of Indian parboiled Rice with Pakistan and Thailand and while it will impact the market, Indian exporters are still at an advantage having older crops in inventories while Pakistan is all reliant on the newer crop”, commented Amit Kumar, Rice Trader from Karachi talking to ProPakistani

Additionally, the Indian administration has also placed a 40 percent duty on sugar exports recently due to diminished cane yields which are also going to increase in sugar smuggling from Pakistani despite rising prices.

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