India is considering lifting its ban on non-basmati white rice exports as abundant rains and increased paddy cultivation boost production, ensuring a stable domestic supply.
Table of Contents
Introduction
India is on the verge of lifting its year-long ban on non-basmati white rice exports, driven by this year’s favorable monsoon rains and a significant increase in paddy cultivation.
This move comes as the country reassesses its rice export policies, buoyed by solid agricultural performance and stable buffer stocks.
Bumper Harvest Boosts Supply Confidence
The abundant rains across key agricultural regions have led to a 14% increase in paddy sowing compared to the previous year, covering 2.77 million hectares.
This surge in cultivation is expected to result in a bumper rice harvest, easing earlier concerns about potential domestic shortages.
Ramesh Chand, a member of Niti Aayog, expressed confidence in the country’s rice supply, stating, “The supply side of rice is not worrisome. It is a comfortable situation.”
Reevaluation of Export Ban
The export ban on non-basmati white rice and a 20% duty on parboiled rice exports were initially imposed to secure local supplies and stabilize prices.
However, the government is considering lifting the ban with the current surplus and moderated rice prices both domestically and internationally.
Chand emphasized that removing the ban would not significantly deplete domestic rice supplies, thanks to the intense stock levels.
Global Trade Implications
Lifting the ban could have significant implications for global rice markets, given India’s role as one of the world’s leading rice exporters.
Industry experts, including Vijay Kumar Setia, former president of the All India Rice Exporters Association, believe that the improved agricultural outlook supports a reassessment of export policies.
However, Setia also called for a review of the government’s procurement strategies to ensure long-term stability and effectively manage food inflation.
Continued Export Activity Despite Ban
Despite the ban, India has maintained a strong presence in the global rice market, exporting 2.77 million tonnes of non-basmati white rice to 14 Asian and African countries, including major destinations like Singapore, Nepal, Malaysia, and the Philippines.
In FY24, India’s rice exports to ASEAN countries increased to $589.34 million, highlighting the ongoing demand and the country’s resilience in maintaining its export commitments.
Conclusion
As India prepares to potentially lift the ban on non-basmati white rice exports, the decision is backed by solid agricultural performance and ample stock reserves.
This move could boost India’s export revenues and reinforce its position as a critical player in the global rice trade.
The anticipated policy shift reflects the government’s confidence in the stability of domestic rice supplies and the overall positive outlook for the agricultural sector.
Post's Author
