New Delhi: The central government on Friday imposed a 20 percent duty on exports of par-boiled rice with immediate effect to curb the rising prices of rice.
The decision comes at a time when food inflation for July had skyrocketed to 11 percent, pushing the retail inflation for the month to 7.44 percent.
The imposition of the 20 percent export duty will make purchasing the commodity expensive for foreign buyers, thus limiting its overseas sales and at the same time boosting its domestic availability.
India had halted the export of white rice on July 20, sending global prices to a 12-year high as measured by the Food and Agriculture Organization’s (FAO) rice price index.
The fresh curb on the export of the parboiled variety is likely to accelerate global prices further.
Finance Minister Nirmala Sitharaman on Friday said that curbing inflation was a priority area for the government at present, adding that the export duty will be effective from October 16, 2023.
With inputs from IANS