India banned the export of broken rice in an effort to increase domestic availability and imposed a 20% export duty on various other varieties of rice after lower monsoon rains limited cultivation.
The General Directorate of Foreign Trade (DGFT) said in a notice dated September 8, “The export policy of crushed rice has been changed from free to prohibited,” indicating that the notice is effective from September 9, 2022.
He explained that the provisions of the Foreign Trade Policy 2015-2020 relating to the transitional agreement would not apply to this notice.
India exports 5% and 25% hulled rice, but demand for 100% hulled rice has skyrocketed in the past few months, especially as a drought hit China.
India’s decision to restrict rice exports is expected to boost global commodity prices and trigger a rally in the competing markets for wheat and corn, raising concerns about food price inflation.
Traders and analysts say rice prices in major exporting countries India, Thailand, Vietnam and Myanmar will rise, hitting food importers who are already suffering higher costs due to bad weather and the situation in Ukraine.
