White Rice Duty Lifted to Nil from 20%, Export Control also Lifted but MEP of US$490 per tonne Continues

· Parboiled Rice Halved to 10% to Boost Shipments

· Rice in the husk under HS Code 1006 10 90 is Restricted with New Duty of 10%

India on Friday (27.09.2024) halved the export duty on parboiled rice to 10% from 20% earlier, the government said in a notification, as inventories in the world's biggest exporter of the grain surged and farmers are set to harvest a new crop in the coming weeks.

Rice stocks at the Food Corporation of India on Sept. 1 stood at 32.3 million metric tons, 38.6% higher than last year, giving the government plenty of elbow room to relax rice export curbs.

The reduction in export duty will lower India's export prices, boost shipments, and force competing countries like Thailand, Vietnam, Pakistan, and Myanmar to reduce their prices as well.

India had imposed a 20% duty on parboiled rice exports in 2023 after its crop was affected by below-normal rainfall. How did rains are more than normal here, the status quo ante of free export is restricted.

The government also reduced the export duty on brown rice and husked rice to 10%, the notification said. This reduction will take effect immediately.

The export duty on white rice (semi-milled or wholly-milled) has been reduced to zero. However, the MEP of $490 per tonne continues which is well above the international price in world market.

Earlier this month, the government removed a floor price for basmati rice exports to help thousands of farmers who complained about a lack of access to lucrative overseas markets such as Europe, the Middle East and the United States.

Buoyed by copious monsoon rains, farmers have planted rice on 41.35 million hectares, up from 40.45 million hectares last year and 40.1 million hectares of the past five years of the average area under the staple.

[Notification No. 44/2024-Customs dated 27 September, 2024]

Seeks to amend Export Duty on Certain Varieties of rice

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 27/2011- Customs, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 153(E), dated the 1st March, 2011, namely :-

In the said notification, in the TABLE,

(i) after S. No. 6, the following serial numbers and entries shall be inserted, namely:-

(1)	(2)	(3)	(4)
“6A.	1006 10 90	Rice in the husk (paddy or rough)	10%
6B.	1006 20 00	Husked (brown) rice	10%
6C.	1006 30 10	Rice, parboiled	10%”;

(ii) after S. No. 7, the following serial number and entries shall be inserted, namely:-

(1)	(2)	(3)	(4)
“7A.	1006 30 90	Semi-milled or wholly-milled rice, whether or not polished or glazed (other than Parboiled rice and Basmati rice)	Nil”.

2 This notification shall come into force with immediate effect.

[F. No. 190354/152/2024-TRU]