Rice prices surge by 10-15% in India as global demand rises
Rice prices in India have surged by 10-15% due to increased global demand following the government’s removal of export curbs on non-basmati rice. This decision, made on September 28, included exempting non-basmati white rice from export duties and reducing the levy on parboiled rice to 10%. Despite a global drop in rice prices, Indian suppliers are expected to maintain firm domestic prices until the new crop arrives, as ample stock remains available in government reserves .
Rice prices in India have surged by 10-15% due to a rise in global demand after the government lifted export curbs on non-basmati rice. The move follows a reduction in export duties and comes with the country’s sufficient rice stock. Domestic prices are expected to stay firm until the new crop arrives.
Rice prices in the domestic market have increased 10-15% as the global demand for Indian rice has shot up following the government’s decision of September 28 to withdraw the export curbs on non-basmati rice, even as global rice prices have fallen up to 15%.The government exempted non-basmati white rice from export duty while reducing the levy on parboiled rice to 10%. The duty cut came within a fortnight of its decision to remove the minimum export price of basmati rice. The measures came at a time when the country had ample stock of rice at government godowns. Global rice prices had soared to their highest level in more than 15 years following India’s decision last year to ban the export of white rice and impose a 20% duty on parboiled rice exports.
“Prices of a certain variety of Thai rice, which was selling at $800 per tonne, have come down to $710 per tonne over the last few days. There is a price pressure on rice that is supplied to the global markets from Thailand, Vietnam and Philippines as India has opened up its exports,” said Suraj Agarwal, CEO of RiceVilla, a rice marketing and exporting firm.Suppliers from Thailand, Vietnam and Pakistan are responding to India’s move by lowering their export prices, according to rice exporters..
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