India's 5 percent broken parboiled variety was quoted around $362-$365 a tonne this week, down from last week's $371-$374 for a sixth weekly decline as it also came under pressure from depreciation in the rupee.
The aggressive selling of old inventories by China to African buyers was also weighing on prices, exporters said.
The country's rice exports for April-February dropped 9.4 percent from a year earlier to 10.57 million tonnes, as leading buyer Bangladesh trimmed its purchases due to a bumper local harvest, a government body said.
The Ministry of Commerce said in a statement that government support for the agriculture sector was allowed under WTO rules and was a common practice among countries.
All Chinese rice samples were accepted while one Vietnamese rice sample was accepted and the other rejected, they said.
Exports for basmati rice, varieties of which account for 60 percent of overall rice exports, fell 18 percent in October
The first consignment of 100 tonnes non-basmati rice was shipped to China, from Nagpur, in September.
China is a leading importer of rice and sugar, while India is the world's biggest exporter of rice.
Rates for top exporter India's 5 percent broken parboiled variety edged up by $2 per tonne to $373-$377 per tonne this week, from their lowest in 17 months last week.
The government had procured 34.35 million tonnes during the last marketing year (October-September), surpassing the target of 33 million tonnes set for that year.
Non-Basmati rice MSP was hiked by 13 percent for 2018-19, for the common variety of paddy against the range bound 3.5-5.4 per cent in the past, Icra said in a report.
Bangladesh, which has emerged as a major rice importer since 2017 after floods damaged its crops, imported a record 3.9 million tonnes during July-May, data from the country's food ministry showed.
The country's buffalo meat exports in the year ended March 31 rose nearly 2 percent to 1.35 million tonnes on upbeat demand from Vietnam, Malaysia and Egypt, the Agricultural and Processed Food Products Export Development Authority said.
Populist support measures are only a short-term solution and aggravate the imbalance in resource allocation.
The move comes at a time when different political parties are trying to reach out to dalits and other backward classes ahead of assembly election in some states, and the general election which is due next year.
The country's buffalo meat exports during the period rose 7.2 percent from a year ago to 1.16 million tonnes on good demand from Vietnam, Malaysia and Egypt, the Agricultural and Processed Food Products Export Development Authority said in a statement.
Replying to the debate on budgetary demands for grants of his department in the state Assembly, Banerjee said a major decision has been taken in this regard following good response from people in different agriculture fairs.
This is the second round of advance estimates for 2017-2018 crop production issued by the government.
At present, pilot projects for rice silos have been undertaken by state-owned Food Corporation of India (FCI) at Kaimur and Buxar in Bihar to test the technology.
The boost in shipments from the world's top exporter of the grain is set to extend into 2018 as Bangladesh and Sri Lanka continue to buy aggressively amid depleting inventories in No.2 exporter Thailand, the officials said.
Procurement is undertaken by state-run Food Corporation of India (FCI) and state agencies for the central pool to meet the requirement of food security law. Rice is purchased at the minimum support price (MSP).
The new norms set by European Commission bring down the maximum residue limit (MRL) level for Tricyclazole (a fungicide) in Basmati rice to 0.01 mg per kg from next year. The norms are applicable on all rice-exporting countries.
Food Corporation of India (FCI), the nodal agency for procurement and distribution, had procured 381 LT in the 2016 -17 marketing season (October-September). For the current year, the government has fixed a higher rice procurement target at 375 LT on hopes of good production.
India's 5 percent broken parboiled rice prices edged up by $4 to $404-$407 per tonne as heavy rainfall in key growing regions is expected to delay harvesting.
Production of summer-sown rice is estimated to fall 2 percent to 94.48 million tonnes, while production of pulses could drop 7.5 percent to 8.71 million tonnes, the government said in a statement.