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Govt Extend 20% Export Duty on Parboiled Rice to March 2024


The decision to extend export duty is a crucial one for any government as it directly impacts the country’s economy and various stakeholders. In the case of parboiled rice, a predominant food in many nations, the Indian government’s decision to extend the 20% export duty until the end of the financial year 2023-2024 carries various important reasons and benefits.

Five Compelling Reasons for Extension of Export Duty

Food Security:

Parboiled rice is an important food in India and plays a significant role in food security. Extending the export duty helps maintain rice stock within the country, ensuring that sufficient supplies are available to meet domestic demands, especially during unforeseen circumstances such as droughts or global supply disruptions.

Over the past year, during high inflation, which rose to 7.8 percent in July this year, India has taken distinct steps to keep retail prices of rice in check. After banning the export of broken rice in September 2022 and halting non-basmati white rice exports in July, New Delhi imposed a 20 percent duty on parboiled rice on August 25, effective till October 15.

Price Stability:

Exporting rice without duties can lead to fluctuations in domestic prices. By continuing the 20% export duty, the government can maintain rice prices in the domestic market, making it more affordable for consumers and providing stability to farmers’ income.

Support for Farmers:

Rice farming is a source of income for millions of farmers in India. A consistent export duty on parboiled rice ensures that farmers earn a fair price for their produce. This support is crucial for sustaining agriculture and rural population livelihoods.

Revenue Generation:

The export duty on parboiled rice contributes significantly to government revenue. This revenue can be reinvested in national infrastructure development, agricultural research, and other crucial sectors that benefit the nation as a whole.

Trade Balance:

A controlled export policy helps maintain a favorable trade balance. It prevents over-exportation of rice, which could potentially lead to shortages in the domestic market. This balance is essential for a stable economy and a thriving agricultural sector.


In conclusion, extending the 20% export duty on parboiled rice until the end of the financial year 2023-2024 is a well-thought-out decision by the government of India. It promotes food security, price stability, and the welfare of farmers while contributing to government revenue and maintaining a balanced trade environment. These reasons collectively demonstrate the wisdom of this policy, ensuring a win-win situation for all stakeholders.