Indian rice traders hike prices to mirror higher export duty

Rice

Regulation & Compliances

Market & Price Trends

Published Mar 29, 2024

Tridge summary

India has seen an increase in its rice export prices this week following the government's decision to impose a 20% export duty on parboiled rice in August 2023, aimed at controlling domestic prices. This measure has led to a rise in export costs as the duty applies to the total transaction value. In contrast, Thailand's rice prices have dropped due to a weakening local currency and reduced demand, even though Indonesian buyers have provided some support. Vietnam's rice prices have remained stable, with a slowdown in farmer purchases attributed to the Philippines' anticipated reduction in imports. Meanwhile, Bangladesh is contemplating permitting private traders to import rice to stabilize domestic prices, despite having satisfactory yields and reserves.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Top exporter India’s rice export prices rose this week as traders factored in higher duty on rice shipments, while demand remained lacklustre in Thailand. India’s 5% broken parboiled variety RI-INBKN5-P1 was quoted at $550-$558 per ton this week, up from last week’s $543-$550. Earlier this month, prices hit a record high of $560. “We’ve had to raise prices since the government is considering the total transaction value instead of Free on Board (FOB) value to calculate the 20% export duty. This has pushed our export prices higher,” said a New Delhi-based dealer with a global trade house. New Delhi imposed a 20% export duty on parboiled rice exports in August 2023 to control domestic rice prices. Indian exporters have received notices from the customs department demanding payment of duty differentials on rice exported in the last 18 months, four exporters told Reuters, a rare tax demand that could cripple rice shipments from India. Thailand’s 5% broken rice prices RI-THBKN5-P1 was ...

Source: Hellenic Shipping News