In another step to control inflation, the government imposed a 20 percent export duty on rice.

Asna Chawl - India TV Paisa
Image: File Its rice

Inflation increased in the country. To control this, the government has taken another big step. In fact, the government has imposed a 20 percent duty on the export of uncooked rice. The move aims to maintain adequate local stocks and keep local prices under control. The finance ministry has said in a notification that the export duty imposed on August 25 will remain in force till October 16, 2023. Duty exemption will be available on uncooked rice lying at customs ports which have not been issued LEO (Late Export Order) and are supported by LC (Letter of Credit) valid before August 25, 2023. With these restrictions, India has now banned the export of all varieties of non-basmati rice. Non-Basmati white rice accounts for about 25 percent of the total rice exported from the country.

Export of non-basmati white rice is already banned.

On July 20, the central government banned the export of non-basmati white rice. Keeping in mind the upcoming festive season, the government took this step with the intention of boosting domestic supply and keeping retail prices under control. Earlier, the export of broken rice was also stopped in September last year. The government had banned the export of wheat in May last year. According to commerce ministry data, India has exported basmati rice worth $4.8 billion in fiscal year 2022-23. In terms of quantity, this export was 4.56 million tonnes. Similarly, exports of non-basmati rice stood at $6.36 billion in the last financial year against a volume of 17.79 million tonnes. The food ministry said last month that non-basmati white rice accounts for about 25 percent of the country’s total rice exports. Banning its exports will help lower prices for consumers in the country.

Retail prices of wheat and rice increased.

Average retail prices of wheat and rice rose to Rs 29.59 per kg and Rs 40.82 per kg respectively in July. Minister of State for Consumer Affairs, Food and Public Distribution Sadhvi Niranjan Jyoti, in a written reply to a question in the Lok Sabha, said that the retail prices of wheat and rice are constantly changing and the government is monitoring their prices. He said that the average retail price of wheat in January was Rs 31.58 per kg, which decreased to Rs 28.74 per kg in May. Thereafter, the average retail price of wheat rose again to Rs 29.59 per kg in July.

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