India has initiated a strategic move to tackle surging rice prices by imposing a 20% export duty on parboiled rice. This action comes in the wake of previous bans on non-basmati white rice and broken rice exports. The step is aimed at recalibrating the domestic market, bolstering local inventory, and countering persistent inflationary pressures driven by escalating input costs.
Price Dynamics and Global Impact
Presently, parboiled rice is priced at ₹37-38 per kg, with basmati rice reaching ₹92-93 across the nation. Notably, the export ban has caused a significant 15-25% surge in global rice prices. This has led West African nations to shift to Indian parboiled rice to meet their domestic consumption needs, as rivaling nations like Thailand, Vietnam, and Pakistan have raised their prices.
Trade Volumes and Implications
India’s decision has seen an upsurge in parboiled rice exports this fiscal year, reaching around 31 lakh MT compared to 25.8 lakh MT in the corresponding period of the previous year. While this measure aims to stabilize domestic costs, its impact has been felt particularly by economically vulnerable populations in nations like Bangladesh and Nepal.
