India now lifts export tax on parboiled rice

India has removed the export tax on parboiled rice following a previous reduction of the export duty from 20% to 10% last month. 

In September, the Indian government also resumed exports of non-basmati white rice, but imposed a minimum export price of $490 per tonne.

This decision comes as the country expects a bumper crop following abundant monsoon rains, leading to a surge in domestic inventories, reports The Hindu.

Increased rice shipments from India are expected to ease international rice prices. 

Trade officials suggest that major exporters like Pakistan, Thailand, and Vietnam may lower their prices in response to India’s aggressive pricing.

Dev Garg, vice-president of the Indian Rice Exporters Association, said the removal of the export tax indicates the government's confidence in the upcoming harvest. 

President of the Rice Exporters' Association, BV Krishna Rao, added that the duty-free exports would encourage price-sensitive African nations to increase their purchases from India.

India has also scrapped the 10% export duty on husked brown rice and rice paddy, further facilitating the flow of Indian rice into global markets.