Rice prices stay high despite imports coming through.

After the duty on rice import was cut by 18% recently to cope with the pressures caused by crop shortfalls, prices were expected to fall in domestic markets. But the price of different varieties of rice have only changed slightly. Importers say the prices have gone up in India from where they import, leaving them unable to lower prices. Government on June 20 cut the import duty of rice by 18% from 28% to keep rice prices affordable in the retail markets. Now the importers have to pay 10% duty. On the other hand, rice prices in India have risen as result of a revival in demand from Asian and African buyers, though markets in Thailand and Vietnam, two other major importers, have remained stable.