In a significant move, the Government of India has removed the 10% export duty on parboiled rice, husked (brown) rice, and paddy (rough) rice, effective from October 22, 2024. This policy, outlined in Notification No. 46/2024-Customs, issued by the Ministry of Finance (Department of Revenue), is aimed at boosting exports and stabilizing the global rice market, especially after concerns regarding El Nino’s impact on production.
The removal of the duty follows a September reduction from 20% to 10%. Originally, the government imposed a 20% export duty on rice in August 2023 in response to deficient rainfall in key paddy-growing areas. However, with a bumper crop expected this year, India’s rice production is estimated to reach 137.83 million tonnes in 2023-24, compared to 135.76 million tonnes in the previous year.
This duty-free export policy will likely benefit price-sensitive buyers, especially in African markets. Additionally, India’s competitive edge in the global rice market may force major exporters such as Thailand, Vietnam, and Pakistan to reduce their prices. This will help soften international rice prices, which had surged to nearly $600 per tonne after India’s earlier export restrictions.
The decision reflects the government’s confidence in the upcoming harvest, and global rice supplies are expected to benefit from this move.
Source: Ministry of Finance (Department of Revenue) Notification No. 46/2024-Customs, New Delhi, October 22, 2024 (G.S.R. 660(E)).
