India imposes 20% export duty on parboiled rice

The Ministry of Finance has imposed a 20% export duty on parboiled rice and specific milled rice varieties, with the new rule taking effect from May 1. The measure is aimed at regulating rice exports and ensuring domestic food security.

In a strategic move to strengthen domestic food security and regulate rice exports, the Ministry of Finance has announced a 20% export duty on parboiled rice and certain milled rice varieties, effective May 1.

As outlined in an official circular, the duty applies to all parboiled rice—both Geographical Indication (GI) tagged and non-GI varieties—as well as “Other Rice” under specific customs classifications. This includes semi-milled or wholly milled rice, whether or not polished or glazed.

This development follows the government’s decision in October last year to lift most restrictions on rice exports that had been in place since September 2022, while maintaining the ban on broken rice exports. At that time, the export duty on parboiled rice was reduced from 10% to zero, and the $490 per tonne minimum export price (MEP) on white rice was removed, following deliberations at a high-level inter-ministerial meeting.

India first introduced rice export controls in September 2022, beginning with a ban on broken rice shipments and a 20% duty on white rice, as part of broader efforts to contain food inflation.

By March 25 of the last fiscal year, India had exported 198.65 lakh tonnes of rice, surpassing the total rice exports of 163.58 lakh tonnes recorded in the entire 2023-24 financial year. Of this volume, basmati rice accounted for 59.44 lakh tonnes, while parboiled rice exports reached 90.44 lakh tonnes. Non-basmati white rice contributed 33.23 lakh tonnes, broken rice stood at 7.95 lakh tonnes, and other rice varieties made up 7.59 lakh tonnes.