Global markets face the opportunity to lower prices

The Indian government on October 22, 2024, officially issued an order to abolish export tax on parboiled rice, to deal with the situation of soaring inventories and prepare for a bumper crop after heavy monsoon rains. This move comes after the Indian government reduced export tax from 20% to 10% last month to encourage exports.

In addition to parboiled rice, the new order also abolishes the 10% export tax on milled brown rice and paddy rice. This means that the supply of rice from India, the world's largest rice exporter, will increase sharply in the coming time. Previously, last month, the Indian government also allowed the resumption of white rice (non-basmati), with a floor price set at 490 USD per ton.

India abolishes export tax on parboiled rice, expected to increase global supply, putting downward pressure on prices of major exporters such as Vietnam and Thailand.

According to international experts, this decision could reduce rice prices in the international market. Dev Garg, Vice President of the Indian Rice Exporters Association, said that the removal of export duty on parboiled rice shows the government's confidence in the upcoming crop. With supplies from India increasing, other major exporting countries such as Pakistan, Thailand and Vietnam will face pressure to reduce prices to compete.

Besides, Mr. BV Krishna Rao, Chairman of the Rice Exporters Association of this country, emphasized that the exemption of export tax on parboiled rice will create opportunities for importing countries, especially African countries that are very price-sensitive, to increase rice purchases from India.

Eliminating export duties on parboiled rice will not only boost exports but also have the potential to have a positive impact on global rice prices, especially as importing countries look for stable and affordable supplies. This will create fierce competition among major exporting countries, forcing them to adjust their prices and export strategies.

With this decision, India not only affirms its position in the rice export industry but also poses a big challenge to rival countries in maintaining market share in the international market.

https://www.thehindu.com/business/Economy/india-scraps-export-tax-on-parboiled-rice-to-boost-exports/article68784614.ece

Source: https://congthuong.vn/an-do-go-thue-xuat-khau-gao-do-thi-truong-toan-cau-dung-truoc-co-hoi-ha-gia-354223.html