Rice Prices: Taking a big step regarding the export of rice, the central government has imposed a duty of 20 percent on the export of parboiled rice. The government has given orders to implement it with immediate effect. According to the notification, the government has imposed various restrictions on foreign exports due to high prices in the domestic market.
India, the world’s largest grain exporter, banned the export of rice on 20 July. Due to this, the rice price index measured globally by the Food and Agriculture Organization (FAO) had reached a 12-year high.
Imposing tariffs from India will make parboiled rice costlier for foreign buyers, which will limit sales and increase its availability in the domestic market. Exports of parboiled rice picked up last month due to increase in production.
Government’s focus on storing grains
The government has imposed a ban on exports due to the increase in the prices of grains in the domestic market. At the same time, there is a possibility of a decrease in production this year. In such a situation, the government has focused on increasing domestic food stocks due to concerns of uneven monsoon being affected by the El Nino weather pattern.
How is the government controlling the inflation of food grains?
The government has come out with two tricks to control it. Under the first, the government has banned exports. On the other hand, it is releasing stocks from state-owned granaries. On August 8, it was said to release 50 tonnes of wheat and 25 tonnes of rice through auction. At the same time, a decision has been taken by the government to reduce the reserve price of rice from Rs 31 per kg to Rs 29 per kg.