Exports of non-basmati white rice banned to improve domestic supply, parboiled rice export will continue
The Central government on Thursday prohibited export of non-basmati white rice, according to a notification of the directorate general of foreign trade (DGFT).
Subhashis Mittra
Exports of non-basmati white rice has been banned to boost domestic supply and keep retail prices under check during the upcoming festive season, the food ministry said in a statement on Thursday.
However, there would be no change in export policy of par-boiled non-basmati rice and basmati rice, which forms the bulk of exports, the directorate general of foreign trade (DGFT) said in a notification.
Non-basmati white rice constitutes about 25 per cent of total rice exported from the country. The total exports of rice from India was USD 11.14 billion in 2022-23 as against USD 9.66 billion in the preceding year. Major destinations of India's non-basmati white rice exports include Thailand, Italy, Spain, Sri Lanka and the USA.
"Export policy of non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or glazed)...is amended from free to prohibited," the DGFT said.
"Export policy of Non Basmati White Rice amended to ensure adequate domestic availability at reasonable prices," the ministry said, adding, the move is aimed to ensure lower prices and adequate availability in the upcoming festival season.
In order to ensure adequate availability of non-basmati white rice in the domestic market and to allay the rise in local prices, the government has amended the export policy from 'Free with export duty of 20%' to 'Prohibited' with immediate effect.
"The domestic prices of rice are on an increasing trend. The retail prices have increased by 11.5 per cent over a year and 3 per cent over the past month," the statement said.
Export duty of 20 per cent on non-basmati white rice was imposed on September 8, 2022 to lower the price as well ensure availability in the domestic market.
However, the export of this variety increased to 42.12 lakh tonnes in September-March period of the 2022-23 from 33.66 lakh tonnes during September-March period of the previous fiscal.
In the first quarter of the current fiscal, about 15.54 lakh tonnes of white rice was exported against only 11.55 lakh tonnes in the year-ago period, which means an increase by 35 per cent.
"This sharp increase in exports can be ascribed to high international prices due to geopolitical scenario, El Nino sentiments and extreme climatic conditions in other rice producing countries, etc.," the statement said.
The prohibition on export of non-basmati white rice will lead to lowering of prices for the consumers in the country.
However, there is no change in export policy of non-basmati rice (par boiled rice) and basmati rice, which forms the bulk of rice exports.
"This will ensure that the farmers continue to get the benefit of remunerative prices in the international market," it added.
Total non-basmati exports in 2022-23 was 177.87 lakh tonnes. Out of that parboiled was 78.46 lakh tonnes and the balance white non-basmati.The balance 99.41 lakh tonnes of white non basmati also included 30.48 lakh tonnes of broken rice. Exports of that was already banned in September 2022. That left 68.93 lakh tonnes of non-broken, non-parboiled, non-basmati rice, on which a 20 per cent export duty was imposed.
Today's decision will impact the 68.93 lakh tonnes of rice whose exports are now banned. White rice export prices are much higher. 475 dollars per tonne for 25% broken and 495 dollars for 5 per cent.
As per the DGFT notification, the consignments of this variety of rice will be allowed to be exported under certain conditions such as where loading of rice on the ship has commenced before this notification.
Export will also be allowed on the basis of permission granted by the government to other countries to meet their food security needs and based on the request of their governments, it added.
