Fortunately, in the past couple of months it had already been seeking to diversify its imports, securing deals with Vietnam and Burma.īangladesh imports both regular white rice as well as parboiled, so this may shift the type of rice it is buying from India. Historically India has been its primary supplier. Bangladesh has high domestic prices and has recently lowered its import tariff to 5 percent to make imports more affordable. Neighboring countries may be particularly affected by this action. However, over the past several years, India has seized an increasing share of global parboiled exports, shipping 4.1 million tons in the first 7 months of 2022, compared to 0.7 million tons from Thailand for the same period. Since paddy rice can either be processed into regular white rice or parboiled rice, the new policy may encourage more shipments of parboiled, since it will not be taxed. Parboiled rice is produced by steaming regular paddy rice under pressure and then milling it, resulting in different cooking characteristics favored among some parts of India, Bangladesh, parts of Africa, and Saudi Arabia. India is the primary exporter with Pakistan as the main competitor. India’s basmati rice exports have averaged around 4.3 million tons annually. Basmati rice is a type of fragrant rice that commands a premium and is primarily exported to the Middle East, Europe, and North America. India exports a variety of types of rice and this ban notably excludes basmati and parboiled rice. The export tax was implemented with less than a day’s notice, leaving exporters scrambling. Especially over the past couple of years, Indian prices have been at a significant discount compared to the other major exporters, making it an attractive option for low-income importing countries.Īs shown in the graph below, the 20 percent export tariff applied to the export quote for September 9 results in a price above most Asian exporters except for Thailand. The largest of these categories is non-basmati, non-parboiled white rice, which it supplies mainly to Africa and neighboring countries. India’s exports of paddy rice, brown rice, non-basmati, non-parboiled regular white rice (HS 10063090) are now taxed at 20 percent. As a result of this ban, the forecast for total rice export has been cut to 20.3 million tons for 2022 and 20.0 million tons for 2023. India supplies more than half of global broken rice exports, which are discussed in further detail on page 10. Since that time, India has become the primary rice exporter, expanding its domination so that in 2021, India accounted for 41 percent of total global exports, larger than the next 4 exporters (Thailand, Vietnam, Pakistan, and the United States) combined. This is the first restriction that India has placed on its exports since it lifted its 3-year ban on non-basmati rice in 2011.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |