International Business News – According to Singapore’s “Lianhe Zaobao” website on the 10th, the Indian government announced that it will impose a 20% export tariff on some grades of rice from the 9th and ban the export of broken rice, which may lead to another upward pressure on international food prices.
The types of rice that are subject to export duties include unmilled, hulled brown, half-milled, whole-milled (or white) rice, the report said.
The report also said that parboiled rice and basmati rice, commonly known as “semi-cooked rice” in the international market, were temporarily excluded from the tariffs.
The report pointed out that any restrictions imposed by India on rice exports could push up global rice prices, further exacerbating inflationary pressures at a time when food prices have soared due to heat waves, drought and the conflict between Russia and Ukraine.
The president of the Rice Exporters Association of India said the tariff-affected white and brown rice accounts for more than 60% of India’s rice exports, and the export price of rice could rise to more than $400 a tonne from the current $350 a tonne.
According to the report, India decided to restrict rice exports because of the lack of rainfall in the main rice-producing areas in the country, which affected production. Prior to this, India had banned wheat exports in May this year and began to restrict sugar exports in June.
Adjawa, executive director of India’s largest rice exporter, expects the tariffs to reduce India’s rice exports by at least 25 percent in the coming months.