The move comes a year after Centre imposed 20 per cent duty on export on the staple food, amidst fears that India could suffer from shortage in its production.
This decision was taken after India recorded below average rainfall in 2023. The order was later extended till March 31, 2024.
In July, the government formed the Rice Federation Consulting Committee, headed by the Ministry of Commerce to deal with the issue of rice exports.
Earlier in September, Centre removed the floor price for basmati rice, which is expected to trigger an influx in orders from Europe, the American continents and the Middle East, a report by Reuters suggested.
With this move, the world’s largest rice exporter may record an increase in its share for the staple food in the global market, according to leading exporters.India’s retail inflation spiked to 3.65 per cent on an annual basis in August as against a five-year low of 3.54 per cent, data released by the Ministry of Statistics & Programme Implementation showed earlier this month.The Reserve Bank of India had, in its Monetary Policy Meeting in August, raised caution about the trajectory of food inflation.
RBI governor Shaktikanta Das had said that headline inflation might see an upward tick if food inflation is not closely monitored.
“Inflation is gradually trending down, but the pace is slow and uneven. Durable alignment of inflation to the target of 4.0 per cent is still some distance away. Persistent food inflation is imparting stickiness to headline inflation,” said governor Das.
