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India bans export of non-basmati white rice.
Jul 21, 2023
The Indian government has prohibited export of non-basmati white rice, a Directorate General of Foreign Trade notification said on Thursday.
'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 in a notification.
However, it will allow the consignments of this rice to be exported under certain conditions like in cases where loading of this rice on the ship has commenced before this notification.
Earlier, news agency Bloomberg reported the Indian government is considering banning exports of most rice varieties. The ban may affect around 80 per cent of India's rice exports, can reduce rice prices within India but may impact global prices negatively.
Uneven distribution of rainfall in the key rice-growing areas of the country has pushed up prices of the grain by up to 20% in the last 10 days, ET reported earlier.
Prices of rice exported from Vietnam soared to their highest in more than a decade this week, on growing supply concerns due to the El Nino weather pattern and India taking this step, Reuters reported. Traders said information about India's possible move to curb exports also pushed prices higher. Traders expected prices to rise further if India were to limit exports.
Meanwhile, rice planting in India has gained momentum with the revival in monsoon rainfall over the past fortnight.
India - the world's biggest rice exporter - banned overseas shipments of broken rice and imposed a 20% duty on exports of various other grades in September 2022 amid concerns over production.
B.V. Krishna Rao, president of the Rice Exporters Association (REA) said a government move to increase paddy procurement price had been pushing up rates. 'But, the government is holding more stocks than needed for welfare schemes. There is no need to restrict exports,' he told Reuters.
economictimes.indiatimes.com
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