India banned exports of broken rice and levied a tax on exports of various grades of rice yesterday. The ban came into effect after rice-producing states such as West Bengal, Bihar and Uttar Pradesh received less rainfall, affecting rice production and due to inflation. For Bhutan, the agriculture minister said the ban on the export of broken rice might have some impact but levying tax is not expected to affect the country for now.
In Bhutan, the Army Welfare Project imports around 70 tons of broken rice in a year to make alcohol products mainly vodka.
Currently, the economic affairs ministry is discussing with the Indian government to exempt the ban on the export of broken rice and flour for Bhutan. As for the general public, the agriculture minister Yeshey Penjor said the issues will be discussed in the cabinet and appropriate measures will be announced soon.
The FCBL alone imported close to 20,000 tons of rice from India last year.
India has imposed a 20 per cent export duty on overseas shipments of white and brown rice, which make up about 60 per cent of India’s total export. Parboiled and basmati rice are excluded from the ban as well as export duty.
Some broken rice exports will be permitted until Thursday next week in cases where loading started before the ban order and consignments had already been handed over to customs.
The rice export ban and new duties mark the third major move by India to restrict food exports, driven by worries about shrinking supplies and inflation. In May, India restricted exports of wheat and sugar. And it banned the export of wheat flour two weeks ago to stem rising food prices.
India exports rice to more than 150 countries.
Samten Dolkar
Edited by Tshering Zam
