Efforts to control rising rice prices intensified, the government took these steps to increase domestic supply
The government has banned the export of broken rice. At the same time, export duty of 20 percent has also been announced on different varieties of rice. It is expected that these steps will bring down rice prices in the country.
20 percent export duty on rice
To control the rising prices of rice, the government has made several announcements one after the other. in which export From the ban on many other types of rice to decisions like export duty. After these steps, it is expected that domestic supply of rice will increase and prices may come down. The Government of India has taken this step in view of the effect of erratic monsoon rains on sowing. After Kovid, there was stability in the prices of rice amid the increase in food prices, although now it is seeing an increase.
India bans the export of broken rice with effect from today. pic.twitter.com/faHTKdwGOi
— ANI (@ANI) September 9, 2022
Ban on export of broken rice
The government has banned the export of broken rice from today. According to the government, now only those consignments will be allowed to be exported, which have been loaded and billed and which have been handed over to customs at the port. With this move, the supply of rice in the domestic market will increase, due to which the jump in prices is expected to decrease. At the same time, other steps will also make exports for other grades of rice expensive and this will also increase the supply in the domestic market and will see a softening of prices.
Rice production is expected to decrease due to erratic rains
Irregular monsoon rains have been seen in India this year. Few states of the country have received less rain. Due to which the sowing of rice has been adversely affected. The area under rice sown in the current Kharif year has decreased by 6 per cent as compared to last year. This is also expected to reduce production. India exported 21.2 million tonnes of rice in the year 2021-22.
The decision will have an effect around the world
The impact of these steps to rein in the export of rice is estimated to have an impact on the world. According to a Reuters article, this move will see a jump in rice prices across the world. Russia-Ukraine crisis coupled with changing weather has affected food production across the world. Due to which there is a sharp upward trend in the prices. With India reducing the supply in the world, the prices may increase further.
