India scraps export tax on parboiled rice to boost exports.

India on Tuesday scrapped the export tax on parboiled rice, the government said in an official order, as inventories in the world's biggest grain exporter surged and the country is set to produce a bumper crop after copious monsoon rains.

Tuesday's decision to remove the tax follows last month's move to reduce the duty to 10% from 20% to boost exports.

Last month, India also gave the go-ahead for resumed exports of non-basmati white rice. However, New Delhi set a floor price for these exports at $490 a metric ton.

Trade and industry officials said bigger rice shipments from India would beef up overall global supplies and soften international prices by forcing other major exporters—such as Pakistan, Thailand, and Vietnam—to reduce their rates.

The decision to remove the export tax on parboiled rice signals the government's confidence about the new season crop, said Dev Garg, vice-president of the Indian Rice Exporters Association.