The Indian government is considering easing its year-old export ban on non-basmati white rice due to surplus stock and a significant increase in paddy sowing, according to Union Minister for Consumer Affairs, Food, and Public Distribution, Pralhad Joshi. The ban, implemented on 20 July 2023, was intended to secure domestic supply and stabilise prices.
A potential relaxation of the ban could benefit farmers, traders, and exporters eager to take advantage of high global demand for Indian rice. It would also provide relief to rice-importing countries that have requested the Indian government to ease restrictions.
Currently, basmati rice exports are allowed only above a set minimum price, while parboiled rice faces a 20% export duty, and non-basmati and broken rice exports are entirely prohibited.
‘Despite the challenges posed by El Niño last year, we managed to keep food inflation under control, and paddy/rice production remained strong,’ Joshi stated at a Mint event on Tuesday. He added that the government is now considering whether to allow non-basmati rice exports, as the country has sufficient food grain stocks to meet both domestic and international needs.
Earlier reports from Mint on August 6 suggested that the ban on non-basmati white rice exports might be lifted due to ample rainfall and improved paddy cultivation. The publication also noted on July 9 that swelling rice stocks could lead to a relaxation of export restrictions.
The export ban has significantly impacted India’s trade, with rice exports during April-June dropping by nearly 34% to 3.2 million tonnes (mt). Specifically, non-basmati white rice exports plummeted 78% to about 300,000 tonnes, while broken rice exports declined by 8% and parboiled rice exports fell by 11%.
Vijay Setia, former president of the All India Rice Exporters Association, commented that the government successfully controlled ‘rice inflation’ through the export ban but suggested that the policy should now be reassessed in light of the current rice availability.
As of August 23, the agriculture ministry reported a 16% increase in paddy sowing area to 39 million hectares and a 7% increase in pulses sowing area to 12 million hectares.
In an interview with Mint, Niti Aayog member Ramesh Chand noted that the increase in paddy sowing and comfortable buffer stocks have alleviated concerns about rice shortages. He believes that even if the ban is lifted, it would not lead to excessive exports, as rice supplies remain stable both in India and abroad.
In FY24, India exported 15.7 mt of rice, including 2.36 mt of non-basmati white rice, 545,000 tonnes of broken rice, and 7.57 mt of parboiled rice, down from 21.8 mt in FY23. India is the world’s second-largest rice producer after China and was the largest exporter globally before the export restrictions, contributing at least 40% to global rice trade.
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