India Cuts Export Duty on Parboiled Rice to 10% to Ease Storage Issues and Boost Exports

The government has reduced the export duty on parboiled rice from 20% to 10% as of Friday night, aiming to clear storage space in its overflowing granaries. This change comes just before the new rice crop procurement begins on October 1.

According to a notification from the finance ministry, the new duty rate will take effect immediately. In addition to parboiled rice, the export duty on husked (brown) rice and rice in husk (paddy) has also been reduced to 10%.

The move is intended to manage stock better and support India’s rice exports, as last year’s harvest still occupies much of the storage capacity.

This reverses the August 2023 policy when export duties were raised to 20% due to poor monsoon rains caused by El Niño, which threatened paddy production. At that time, the government focused on securing enough rice for domestic consumption.

However, with record high paddy sowing and surplus stock, the government now seeks to ease the storage burden and help exporters clear their inventory. Haryana and Punjab, major rice-producing states, have already started paddy procurement.

India exported 15.7 million tonnes of rice in FY24, including 7.57 million tonnes of parboiled rice.