Government Imposes 20% Export Duty on Parboiled and Milled Rice Starting May 1

In a move aimed at bolstering domestic food security and regulating rice exports, the Ministry of Finance has announced a 20% export duty on parboiled rice and select varieties of milled rice, effective from May 1. According to an official circular, the new export duty will apply to both GI-tagged and non-GI parboiled rice, as well as to rice classified under "Other Rice" categories — including semi-milled or wholly milled rice, whether polished or glazed. This policy shift comes after the government, in October last year, had lifted earlier restrictions on rice exports that were imposed in September 2022. At that time, it had also eliminated the 10% customs duty on parboiled rice and scrapped the $490 per tonne minimum export price (MEP) for white rice following a key inter-ministerial decision. The earlier relaxation aimed to address the issue of overflowing rice stocks in major grain-producing states such as Haryana and Punjab. However, the reintroduction of the 20% duty signals a renewed focus on containing food inflation and securing domestic supply. India first began restricting rice exports in September 2022, banning broken rice exports and placing a 20% duty on white rice exports to combat rising food prices.

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