India mulls extension of parboiled rice curbs ahead of key polls

Bloomberg News :
India, the world’s top rice exporter, may extend an export levy on parboiled rice to control local prices ahead of key polls, keeping the market tight and raising the risk of higher global food inflation.

The government is considering an extension to a 20% export levy, which is due to expire on 15 October, according to people familiar with the matter who asked not to be identified as the talks are confidential.

There are no plans to raise the tax to 40%, as speculated by some market participants, they said.

India ramped up its export restrictions on rice in late July, seeking to keep a lid on domestic prices ahead of some state polls next month and a national election in early 2024.

The curbs led to an Asian benchmark surging to the highest level in almost 15 years, although prices have cooled recently.

A spokesperson who represents India’s food and commerce ministries declined to comment. A finance ministry spokesperson didn’t immediately respond to a request for comment.

Prime Minister Narendra Modi will seek a third term in office at the election next year and the government he leads has also restricted exports of sugar and wheat, and is selling grains from state reserves.