India has introduced a 20% export duty on various categories of rice exports, effective May 1, 2025, through Notification No. 27/2025-Customs dated April 30, 2025. The decision is part of a broader strategy to ensure food security, stabilize prices, and manage export volumes amid changing global and domestic economic conditions.

Overview of the Export Duty Imposition

Key Details	Information
Effective Date	May 1, 2025
Notification Number	27/2025-Customs
Notification Date	April 30, 2025
Export Duty Rate	20%
Covered Rice Categories	Parboiled rice, semi-milled, wholly milled, and polished/glazed rice
Regulatory Framework	Amendment to Second Schedule of the Customs Tariff Act, 1975

Categories Affected

The export duty applies to the following rice categories under the Customs Tariff Act:

• Parboiled Rice (including GI-recognized and other varieties)
• Other Rice Types:
  • Semi-milled rice
  • Wholly milled rice
  • Polished or glazed rice

This coverage ensures that a broad spectrum of processed rice products is included under the new regulation.

Objectives Behind the Duty

The imposition of the export duty aligns with multiple regulatory and strategic objectives of the Indian government:

Objective	Explanation
Domestic Food Security	To ensure an adequate domestic supply of rice by discouraging excessive exports.
Market Price Regulation	To curb inflation by stabilizing rice prices in the domestic market.
Geopolitical Strategy	To retain control over exports amid fluctuating global food supply dynamics.
Farmer Protection	To provide farmers with stable market conditions and pricing.
Economic Trade Balance	To manage trade deficits and retain essential food grains within the economy.

Implications for Exporters and the Global Market

This policy shift is likely to affect global rice prices, especially in markets dependent on Indian rice exports. Exporters may face a temporary slowdown as they adjust pricing structures to accommodate the new duty. Importing countries might also explore alternative sourcing options, which could reshuffle trade flows across Southeast Asia and Africa.

Conclusion

The 20% export duty reflects India’s proactive stance on preserving food security and economic stability. As one of the world’s leading rice exporters, India’s policy decisions have a direct impact on global agricultural trade. The current move underscores the government’s priority to protect its domestic interests while balancing its role in the international grain market.