| Exports During the Ban Exports permitted to meet the food security needs of other countries upon their request. National Cooperative Export Limited (NCEL) facilitated exports to United Arab Emirates (UAE), Bhutan, Mauritius, Singapore, Nepal, Cameroon, Cote d’ Ivoire, Republic of Guinea, Malaysia, Philippines and Seychelles. |
- The Government of India recently lifted the export ban on Non-Basmati White Rice where previously, a 20% export duty on Non-Basmati White Rice was removed and export duty on three other rice categories was reduced from 20% to 10%.
- The reason for ban was a marginal dip in rice production and threat of erratic monsoon in the previous year. It also ensured domestic availability and stabilized prices.
- Reasons for lifting the ban –
- Higher Sowing in Kharif Season: Last year, the paddy sowing was 2-2% higher than the previous year, with states like UP, MP, WB, etc seeing increased sowing.
- Record Production Expected: Total Rice Production estimate for 2023-24 is 1.5% higher than last year.
- Declining Wholesale Prices: Prices have seen a downward trend since the last year, i.e. 2023.
- Stable Retail Inflation: CPI inflation peaked in July 2023 and has dropped since then.
- Surplus Stocks in Central Pool: Current stock of rice significantly exceeds the buffer stock norms of government.
| India’s Status as a Rice Exporter Largest Exporter: India is the world’s largest exporter of rice. Second-Largest Producer: After China. Global Production Share: India and China account for over 50% of the world’s rice production. In 2023, Exports from India constituted 33% of global rice exports. Thailand and Vietnam: Main competitors, together matching India’s export volumes. |
- Impact of lifting the ban –
- Positive impact on traders and farmers: Farmers growing premium non-Basmati varieties like Sona Masoori stand to benefit now and traders can export without paying the previous 20% duty.
- Potential impact on domestic prices: Retail prices may rise due to increased exports and can impact consumer needs.
Dig Deeper: India’s Agriculture policies and WTO regulations
