Export Ban on Non-Basmati White Rice Lifted, But Govt Sets $490 per Ton Minimum Export Price

The government has officially lifted the ban on exporting non-basmati white rice, as announced in a notification from the Directorate General of Foreign Trade on Saturday, effective immediately. However, exports will be subject to a minimum export price (MEP) of 490 dollars per ton. Earlier this month, on September 13, the government had also removed the 950 dollars per ton MEP previously imposed on basmati rice exports.

These crucial decisions come just days ahead of the assembly elections in Haryana, a key state in rice production, where voting is scheduled for October 5.

In a related move, just a day prior, the government reduced the export duty on non-basmati parboiled rice (sella rice) from 20% to 10%, while also eliminating the export duty on other non-basmati white rice. This decision was issued by the Ministry of Finance's Department of Revenue on September 27 and is effective immediately. The central government had introduced the export duty on sella rice last year to combat rising prices in the domestic market.

With record paddy acreage and favorable monsoon conditions during the current Kharif season, the outlook for rice production in the country appears strong. The government recently projected a record rice production of 137.8 million tons for the 2023-24 season.

In the previous year, India exported approximately 17 million tons of rice. The year before that (2022-23), India emerged as the largest rice exporter globally, with around 21 million tons of exports, accounting for 40% of the worldwide rice market.