According to Reuters, India has prohibited exporting broken rice and charged a 20% levy on all other types.
According to Reuters, India has prohibited the export of broken rice and put a 20% levy on imports of other grades. In reaching the decision, which was announced on Thursday, the South Asian country highlighted concerns about food security since planting had been limited by below-average monsoon rains. India sends rice to over 150 nations.
According to reports, the government has exempted parboiled and basmati rice from the export tax, which will take effect on September 9. Additionally, it outlawed the export of 100% broken rice, which is mostly imported by a few African nations for use in food.
White and brown rice, which account for more than 60% of India’s exports, will be impacted by the tariff, according to B.V. Krishna Rao, president of the All-India Rice Exporters Association. “With this tax, rice shipments from India will lose their competitiveness on the global market. According to Rao, buyers will move to Thailand and Vietnam.
India competes with Thailand, Vietnam, Pakistan, and Myanmar for a market share of more than 40% of the world’s rice shipments. The tariff, according to experts, will lead the nation’s exports to decline in the upcoming months by at least 25%.
India has reportedly been the world’s cheapest rice exporter by a wide margin, which has somewhat protected African nations like Nigeria, Benin, and Cameroon from the increase in the price of wheat and corn. All food crops’ prices were rising, except rice. Rice is currently joining the protest, he said.
The merchant also mentioned that China’s purchases for feed could be severely impacted by the ban on broken-rice imports.
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