MUMBAI: India has extended its export tax on parboiled rice until March 2024, according to a government order announced on Friday.

Reuters had on Wednesday reported that the government was planning to extend a 20% duty on exports of parboiled rice until March 2024, a move that could further reduce shipments from the world’s largest exporter and raise global rice prices.

In August, India imposed a 20% duty on exports of parboiled rice and this was originally set to expire on Oct 15 India surprised buyers by imposing a ban on exports of widely consumed non-basmati white rice in July, following a ban on broken rice exports last year.

India accounts for more than 40% of world rice exports and any cut in shipments could inflate food prices, given low inventories in other exporting countries.