As a result of New Delhi’s restrictions, which compel customers to move to competitor suppliers who are selling the grain at a lower price, India’s rice exports may decline by 25% this year.
Late last week, India banned shipments of broken rice and put a 20 percent levy on exports of other grades of rice in an effort to increase supplies and stabilise prices after sowing was hampered by below-average monsoon rainfall. The tariff has increased the price of Indian rice.
Exports may decline by at least 5 million metric tonnes. Exports for this year would then be about 16.2 million tonnes. In the fiscal year 2021/22, rice exports hit a record 21.2 million tonnes, surpassing the combined exports of the following four countries: Thailand, Vietnam, Pakistan, and the United States.