Govt lifts curb on non-basmati white rice exports, removes floor price

The government had imposed a ban on exports of non-basmati rice on July 20, 2023.

The Union government on October 23 removed the minimum export price (MEP) of $490 per tonne on overseas shipments of non-basmati white rice, a move expected to promote shipments of the commodity.

"The requirement of MEP for the export of non-basmati white rice…has been lifted with immediate effect," the Directorate General of Foreign Trade (DGFT) said in a notification.

The government had imposed a ban on exports of non-basmati rice on July 20, 2023.  On September 28, the government withdrew a blanket ban on overseas shipments of non-basmati white rice and imposed the floor price.

The announcement comes a day after the government announced the reduction of export tax on parboiled rice to zero from the current 10 percent.

These measures came at a time when the country has ample stock of rice at government godowns and retail prices are also under control.

Bigger rice shipments from India would beef up overall global supplies and soften international prices by forcing other major exporters – such as Pakistan, Thailand and Vietnam – to reduce their rates, trade and industry officials have said.

Earlier, the government scrapped the minimum export price for basmati rice to boost outbound shipments and enhance farmers' income.

The country exported non-basmati white rice worth $201 million during April-August this fiscal. It was $852.52 million in 2023-24.

Though there was a ban on the exports, the government was allowing the shipments to friendly nations like Maldives, Mauritius, the UAE and African countries.

This variety of rice is widely consumed in India and it also has demand in global markets, particularly in nations which have large Indian diaspora.

The ongoing war between Russia and Ukraine is among the factors that have disrupted the foodgrain supply chain.

(With PTI inputs)