India on Friday banned the export of broken rice with immediate effect in an attempt to boost its supply and tackle a hike in the price of the foodgrain in the country, Reuters reported.
However, the ban will not apply to the supply of consignments that are already being loaded, the shipping bill has been filed, or the commodity has been handed over to the customs for clearance.
Meanwhile, the Union government on Thursday also imposed a 20% export duty on various grades of rice to boost domestic supplies, reported ANI. The export duty came into effect on Friday. Parboiled and basmati rice are exempt from the duty, according to Reuters.
The duty will reduce the supply of white and brown rice that account for over 60% of India’s exports, said All India Rice Exporters Association chief BV Krishna Rao.
“With this duty, Indian rice shipments will become uncompetitive in the world market,” Rao told Reuters. “Buyers will shift to Thailand and Vietnam.”
India exports rice to over 150 countries. Any reduction in its shipments would increase pressure on global food prices that are already rising due to drought, heatwaves and the Russian invasion of Ukraine.
New Delhi accounts for over 40% of global rice shipments and competes with Myanmar, Thailand, Vietnam and Pakistan in the international market.
In May, India had banned the export of wheat after a spate of severe heatwaves since March curtailed output and domestic prices rose to a record high. The ban led to an increased demand for wheat flour, with its exports rising 200% between April and July from a year ago.
In August, New Delhi had restricted the export of wheat flour, maida, semolina and wholemeal aata to control rising prices.
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