Explained: Why India has added duty and ban on rice exports

India, the world's largest exporter of rice has imposed an export duty on the cereal and also banned international trade of broken rice starting today.

According to a notification by the revenue department, an export duty of 20 per cent has been imposed on 'rice in husk (paddy or rough)' and 'husked (brown) rice. Export favourite basmati rice has not been placed on the export duty regime.

India, the world's second-largest rice producer after China, commands a 40 per cent share in the global trade. It exported non-Basmati rice to more than 150 countries in 2021-22.

Below-average rainfall in key rice-producing states such as West Bengal, Bihar and Uttar Pradesh has raised concerns over India's rice production. The country has already banned wheat exports and restricted sugar shipments this year.

This year, paddy also saw lower cultivation, which is also raising rice prices. The total area under paddy cultivation as on September 2 is lower by 5.6 per cent to 383.99 lakh hectares, compared with 406.89 lakh hectares last year.