India bans rice exports after paddy acreage falls and domestic prices rise

India bans rice exports after paddy acreage falls and domestic prices rise<br>

A 20 percent export tax has been imposed on several varieties of rice. The notification of the Revenue Department said, “Situations have arisen in which it has become necessary to take immediate action.

New Delhi: India, the world’s largest exporter of rice, on Thursday imposed a 20 per cent export tax on several varieties of rice to contain domestic prices.



According to a notification issued by the Revenue Department, all exports of paddy, brown rice and milled rice, except parboil and basmati, will attract 20 per cent export duty from September 9.

“The Central Government is of the view that export duty should be levied on certain items and circumstances exist in view of which it is necessary to take immediate action,” the notification said.

This step has been taken at a time when rice prices have not only increased due to higher demand from Bangladesh, Iran, Iraq and Saudi Arabia, but also due to decrease in paddy acreage in many states.

The situation of banning the export of rice has also arisen due to uneven rains, especially in states like Uttar Pradesh, Bihar, West Bengal and Jharkhand due to low and late sowing of paddy.

According to the Ministry of Agriculture, sowing of paddy in the current Kharif crop season till September 2 has been 6 percent less than last year.

The move to impose export duty on rice exports comes after India imposed a ban on wheat exports in May due to reduced yields after the heatwave.

Data from the Ministry of Consumer Affairs shows that retail rice prices have increased by 5.7 per cent in year-on-year terms (as on September 8), while wholesale rice prices have increased by 7.8 per cent in the same period .

India is the second largest producer of rice in the world after China and the top exporter with 40 per cent share in the global rice trade. It has set a target of producing 112 million tonnes of rice in the ongoing kharif crop season in June-October.

In 2021-22, India exported more than 21 million tonnes of rice worth Rs 72,000 crore. Out of this, the share of non-basmati rice in the total rice export is more than 80 percent.

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