India, the world’s leading rice exporter, may ease restrictions on exporting certain varieties to prevent a surplus before the new crop hits the market in October, according to sources familiar with the matter.
The government is considering permitting white rice exports with a fixed duty, said the sources, who requested anonymity due to the confidential nature of the discussions. Additionally, authorities may remove the 20% tax on parboiled rice exports and instead impose a fixed levy to curb under-invoicing of shipments, they noted.
Such measures could help reduce benchmark Asian rice prices, which soared to a 15-year high in January after India began restricting key rice varieties in 2023. This would benefit countries in West Africa and the Middle East that depend heavily on India for their rice supplies.
A spokesperson for the food and commerce ministries declined to comment immediately.
India’s total rice exports dropped 21% year-on-year to 2.9 million tons in the first two months of the fiscal year starting April 1, according to government data. Exports of non-basmati rice decreased by 32% to 1.93 million tons during the same period.
Indian farmers are currently planting their main rice crop for the next harvest as the monsoon season begins. Planting will peak in July, and the grain will be harvested from late September.
The acreage stood at 6 million hectares (14.8 million acres) as of July 8, a 19% increase from a year earlier, according to the farm ministry, following a recovery in the monsoon after last month’s deficient rains.
