The Indian government has imposed new restrictions on rice exports, with a new 20% tax on steamed rice until October 15, in a move that could increase world prices for this product.
The decision was announced by the Finance Ministry on Friday night and adds to restrictions on all varieties of rice other than basmati.
Protectionist moves like this are aimed at driving down local rice prices, in what could be an electoral tool for Indian Prime Minister Narendra Modi ahead of next year’s elections.
However, this move comes at a time when Asian rice prices soared earlier this month to levels not seen in almost 15 years, with the added difficulty this poses for large importers such as the Philippines and some African countries.
“Domestic prices will come down and the Indian government will be able to control food inflation more easily, but international buyers will have to absorb the price increase,” Rice Exporters Association BV Krishna Rao, president, told Bloomberg. quoted by Europa Press.
Rice is a staple food for about half the world’s population and these restrictions come at a time when food prices remain high due to Russia’s war in Ukraine.
Parboiled rice accounts for about one third of India’s total rice shipments. The country has already banned exports of broken rice and non-basmati white rice, restricted exports of wheat and sugar, and restricted storage of some crops.
India is also considering abolishing a 40% import tax on wheat and selling tomatoes, onions and cereals from state reserves to improve local supplies.
Steamed rice is one that comes from a process that consists of partially boiling the paddy rice before grinding it, in order to increase its nutritional values and change the texture of the cooked rice.
Source: TSF
