India banned the export of broken rice and imposed a 20% duty on exports of other types of rice on Thursday. The world’s biggest exporter of grains is trying to boost local supplies and calm prices after below-average monsoon rains hampered planting.

“The import duty took effect at midnight, but buyers are not ready to pay the duty,” said BV Krishna Rao, chairman of the All India Rice Exporters Association (AIREA). “We have stopped loading ships”.

India ships around two million tonnes of rice every month, with large quantities loaded from eastern ports such as Kakinada and Visakhapatnam in the state of Andhra Pradesh.

Under similar circumstances, New Delhi has in the past granted exemptions for contracts backed by Letters of Credit (LC), or payment guarantees, renewed until the government makes policy changes, said Himanshu Agarwal, executive director at Satyam Balajee, India’s largest rice exporter. . .

But that didn’t happen this time.

“Margins are thin in the rice trade and exporters cannot afford to pay the 20 percent duty. The government must allow exports of the LCs that have been issued,” said Agarwal.

New Delhi is allowing exports against a letter of credit that was issued when it banned wheat exports earlier this year.

About 750,000 tonnes of white rice are at the port, leading to a 20% tariff starting Friday, traders estimate.

Regarding the rice cracking ban, India has allowed the loading of cargo that has been handed over to customs or whose ships have docked before Thursday’s notification. But uploads must be completed before September 15th.

At least 350,000 tonnes of broken rice scattered across ports do not meet these criteria, and it is impossible to move cargo inland, said a New Delhi-based trader belonging to international trade.

Shipments of broken rice are destined for China, Senegal and Djibouti, while white rice of other qualities is purchased by buyers in Benin, Sri Lanka, Turkey and the United Arab Emirates, exporters said.

AIREA has asked the government to relax new rules for transitional cargoes totaling 750,000 tons of white rice and 500,000 tons of broken rice.

The Commerce Minister did not immediately respond to a request for comment.

India exports rice to more than 150 countries and the reduction in shipments will increase pressure on food prices, which are already rising due to a drought, heat wave and Russia’s invasion of Ukraine.