(Bloomberg) -- India loosened restrictions on some rice exports, a move that may ease global prices and signal a shift in domestic agricultural policies following the recent national elections.
The government cut the tax on parboiled rice shipments to 10% from 20%, according to a notification from the finance ministry.
The world’s top exporter had started its curbs in 2022 in an effort to ensure domestic food security and tame inflation. That caused the Asian benchmark price to climb to the highest since 2008 and forced major consumers to seek supplies from other countries. The staple is vital to diets of billions of people across the planet.
While the move was largely successful in stabilizing local prices, US Department of Agriculture data show that India is now saddled with record stockpiles. The latest policy moves could help ease that glut and cut import costs for countries such as Indonesia and Senegal.
Rice exports from the South Asian nation fell almost 25% from a year earlier to 5.26 million tons in the first four months of the fiscal year that started on April 1, according to government data.
Indian farmers have started harvesting monsoon-sown rice crops following good rainfall. Plantings have been higher than a year earlier.
The government also set an export duty of 10% on the unmilled variety, according to the notification published on Friday. Overseas shipments of semi-milled or wholly-milled rice will not attract any levy, it said.
--With assistance from Siddhartha Singh.
(Updates to add details, export figures from fifth paragraph)
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