Twenty per cent export tax on several varieties of rice. ‘Circumstances exist which render it necessary to take immediate action’, says revenue dept notification.
New Delhi: India, the world’s largest exporter of rice, Thursday imposed a 20 per cent export tax on several varieties of rice in a bid to tame domestic prices.
According to a notification issued by the department of revenue, all export of paddy (unmilled rice), brown rice and milled rice — except parboiled and basmati rice — will attract a 20 per cent export duty beginning 9 September.
“The central government is satisfied that export duty should be levied on certain articles and that circumstances exist which render it necessary to take immediate action,” the notification said.
The development comes at a time when the price of rice has shot up not only because of higher demand from Bangladesh, Iran, Iraq, and Saudi Arabia but also due to the lower paddy acreage in several states.
The curb on rice exports follows lower and late planting of paddy due to uneven rains, particularly in states such as Uttar Pradesh, Bihar, West Bengal, and Jharkhand.