(Bloomberg) -- India removed restrictions on shipments of non-basmati parboiled rice, a move that’s likely to boost the nation’s competitive edge in the world market and boost earnings of local farmers during the current harvesting season.
The government scrapped its 10% export duty on the food grain, according to a notification by the finance ministry. The nation also abolished the tax on the unprocessed variety, it said on Tuesday.
The measures by the world’s top rice shipper are likely to help Indian traders compete with rivals, mainly from Thailand. Although global prices could come down further, domestic farmers may fetch better prices as demand for their biggest annual food crop is likely to rise.
India removed some restrictions in September, which caused world prices to tumble the most in more than 16 years earlier this month. However, the South Asian country continues to keep a floor price of $490 a ton on exports of non-basmati white rice, and ban overseas shipments of the broken grade.
The most populous nation began limiting exports in 2022 as it wanted to ensure food security and tame inflation. That sent Asian prices to the highest since 2008 and forced major consumers to seek supplies from other growers. The staple is vital to diets of billions of people across the planet.
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