22-8-2023 (NEW DELHI) India’s Food Secretary, Sanjeev Chopra, stated on Tuesday that the country is not considering imposing any restrictions on the exports of non-basmati parboiled rice. This comes in response to reports suggesting that Delhi was contemplating implementing a tax on shipments of parboiled rice.
Last month, India surprised buyers by enforcing a ban on the export of widely consumed non-basmati white rice, following a similar ban on broken rice exports last year. However, as of now, there are no restrictions on the exports of parboiled rice, which accounts for nearly a third of India’s total rice exports.
The announcement of the export ban on certain rice varieties, coupled with concerns surrounding Thailand’s rice production outlook, led to a surge in rice prices in Asia. In fact, prices reached their highest level in almost 15 years this month.
Prime Minister Narendra Modi’s government has intensified efforts to counter the rising domestic food prices in India, particularly with an eye on the upcoming early elections next year. Recently, the government focused on addressing the escalating cost of onions, imposing a 40% export duty on them in an attempt to stabilize domestic supplies.
When asked about the possibility of imposing new curbs on parboiled rice, a finance ministry spokesperson did not immediately respond to the inquiry.
India has already implemented several measures to manage its agricultural sector, including banning exports of broken rice and non-basmati white rice, restricting shipments of wheat and sugar, and imposing limitations on the stockpiling of certain crops. Additionally, the nation is contemplating abolishing the current 40% import levy on wheat and considering the sale of tomatoes and grains from state reserves to improve supplies.
Concerns about domestic supply have arisen due to a 15% lower-than-normal rainfall in key rice-growing states, including West Bengal, Uttar Pradesh, Jharkhand, Bihar, Chhattisgarh, and Andhra Pradesh, during this season. As rice is the country’s primary food grain crop grown during the rainy season, this shortfall raises worries about the availability of the staple food.
