20% duty on export of non-basmati rice

India will impose 20% export duty on non-Basmati ‘white’ rice exports, with effect from Friday 9th September 2022. However, par-boiled rice has been exempted from export duty. The export duty imposed will ensure uninterrupted domestic supplies of rice and will also check the price rise in domestic market as the paddy production is expected to fall in the current kharif season. 

It is reported that there has been a 5% decline in paddy sowing area in the current kharif season due to an inadequate rainfall in the paddy growing states of West Bengal, Uttar Pradesh, Jharkhand and Bihar. Consequently, a fall in rice production is expected for the 2022-23 crop year (July-June). The rice production in the previous crop yea2021-22, was recorded at 130 mt.

V Krishna Rao, president, All India Rice Exporters Association, said ‘imposition of export tax will definitely reduce the volume of rice export this fiscal and make rice from India costlier’.

India, the world’s largest rice exporter, is exporting non-basmati rice at about US$ 360 a tonne.