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The Indian government has announced a significant reduction in the export duty on parboiled rice, a move aimed at boosting the country's rice exports. This reduction, which brings the duty down from 20% to 10%, is expected to make Indian rice more competitive in global markets. The decision comes at a time when rice prices have been rising globally, primarily due to supply constraints and increased demand. By lowering the export duty, India aims to capitalize on this global demand surge and increase its share in the international rice market.
The reduction in export duty is a strategic move by India to address the concerns of rice exporters and encourage them to increase their shipments. The higher export duty had been a significant deterrent for exporters, as it increased the cost of their product in the international market. The lower duty is expected to make Indian rice more appealing to foreign buyers, leading to a potential rise in exports. This is especially crucial as India is one of the world's largest rice producers and exporters, and a thriving export sector plays a crucial role in the country's economy.
However, the impact of this move on domestic rice prices remains a point of concern. Some experts believe that the reduction in export duty might lead to an increase in domestic prices as more rice is exported. The government is likely to keep a close watch on domestic rice prices and intervene if necessary to ensure that prices remain stable. Overall, the decision to reduce the export duty on parboiled rice is a strategic move by India to capitalize on the global demand for rice and enhance its position in the international market. The move is expected to benefit rice exporters while also contributing to India's economic growth. It remains to be seen how the reduced duty will impact domestic rice prices, and the government will need to carefully monitor the situation and intervene if necessary to protect the interests of domestic consumers.
Source: India Live News Updates: India reduces export duty on Parboiled rice to 10% from 20%