(Bloomberg) -- India loosened restrictions on some rice exports, a move that may ease global prices and signal a shift in domestic agricultural policies following recent national elections.
The government lifted a ban on non-basmati white rice shipments, and set a minimum export price of $490 per ton, according to a notification from the Directorate General of Foreign Trade. On Friday, authorities cut a tax on overseas sales of parboiled rice to 10% from 20%.
The world’s top exporter started 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 showed 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 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 white rice will not attract any levy, it said.
--With assistance from Abhishek Shanker, Shwetha Sunil, Siddhartha Singh and Atul Prakash.
(Updates to add impact of previous restrictions from third paragraph onward)
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