India Imposes 20% Export Duty on Parboiled and Milled Rice to Ensure Food Safety

According to the Financial Express Report, the Ministry of Finance has imposed a 20% export duty on parboiled rice and certain milled rice varieties. The decision is applicable from May 1, 2025. According to the government circular, the duty applies to parboiled rice (including both GI-tagged and other types) and rice classified as “Other Rice” under customs codes. This includes semi-milled or wholly milled rice, whether or not polished or glazed.

Customs Classification and Product Coverage

The export duty targets specific categories defined under the customs tariff. It applies across varieties that fall under particular Harmonised System (HS) codes covering parboiled rice and milled rice types. These categories include processed rice products that are polished or glazed, and those that are not. The government’s move includes rice not falling under the broken rice category, which remains under an export ban.

Previous Export Rule Changes in 2023

In October 2023, the government had eased some earlier export restrictions. The Customs duty on parboiled rice was reduced from 10% to zero, and the $490 per tonne minimum export price (MEP) on white rice was removed. These decisions were taken at a high-level inter-ministerial meeting and were aimed at managing inventory levels in government warehouses. At that time, the ban on broken rice exports remained in place.

Initial Restrictions Started in 2022

Rice export controls were first introduced in September 2022. The government banned broken rice exports and added a 20% duty on white rice shipments. These steps were part of a larger effort to manage the domestic food grain supply and pricing. The October 2023 relaxations were intended to address overflow situations at storage facilities in states like Haryana and Punjab.

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Conclusion

The reintroduction of the 20% export duty adds a new layer to rice export policy. It applies to parboiled and certain milled rice varieties and is effective immediately from May 1, 2025. Previous changes from 2023 remain in place, including the continued ban on broken rice exports.

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