Rice producers slide after Govt imposes 20% export duty on rice

Shares of two rice producers fell by 0.77% to 2.99% after the government on Thursday imposed a 20% export duty on non-Basmati rice except for parboiled rice.

LT Foods (down 2.99%) and KRBL (down 0.77%) declined.

As per a release by the Department of Revenue, under the Ministry of Finance, 20% levy will be imposed on export of rice in the husk (paddy or rough), husked brown rice, semi-milled or wholly-milled rice, whether or not polished or gazed (other than parboiled rice and Basmati rice). The notification shall come into force from 9th September 2022.

Further, the government has banned the export of broken rice with an aim to increase domestic availability. "Export Policy of broken rice under HS code 1006 40 00 is amended from 'Free' to 'Prohibited'," the Directorate General of Foreign Trade (DGFT) said in a notification dated 8 September 2022.

India is the world's second-largest rice producer after China and commands a 40% share in the global trade.

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