India extends curbs on rice exports with 20% duty on parboiled variety
₹37-38 a kg and ₹92-93 for basmati rice. Traders said that free-on-board (FoB) parboiled rice price is around $500 a tonne and $1,000 a tonne for basmati varieties.
India has a share of around 25-30% of the global parboiled rice trade. Retail inflation in rice rose to 12.96% in July from 12% in June and 4.3% in July 2022.
The repercussions of the ban have been most acutely felt by economically disadvantaged populations in countries such as Bangladesh and Nepal, who rely on Indian white rice. Similarly, African nations including Benin, Senegal, Togo, and Mali, which primarily import broken rice – a cost-effective and highly satiating variety – have also been severely affected.
The export prohibition implemented by India last month has triggered a notable surge in global rice prices, registering an increase of 15-25%. Consequently, nations in West Africa have had to transition to utilising Indian parboiled rice to fulfill their domestic consumption needs.
This shift was prompted by the elevated price quotes from India's competitors like Thailand, Vietnam, and Pakistan. This dynamic has led to a discernible uptick in India's parboiled rice exports during the current fiscal period, amounting to approximately 3.1 million metric tons compared to the 2.58 million metric tons recorded during the same period in the previous fiscal year, as indicated by government data.
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