NEW: The government on Saturday lifted the blanket ban on export of non-basmati white rice while imposing a minimum export price (MEP) of $490 per tonne on the grain. This came a day after it halved the export duty on parboiled rice to 10%. The two consecutive decisions will push outbound shipment of the key foodgrain just ahead of an estimated bumper summer crop and when stocks at FCI warehouses are at capacity.
Traders said they have started receiving calls from overseas as soon as the government order became public. India is the world's biggest exporter of rice. The government had banned export of non-basmati white rice in July 2023 and had also imposed a 20% duty on parboiled rice export s amid fear of reduction in paddy production due to below-normal rainfall. Rice export was allowed only to some countries through diplomatic channels to meet their food security requirement.
Recently government also removed the ban on export of onion and MEP for basmati rice.
“There is enough stock of rice in the market and also with the govt. We will have a bumper crop . It was necessary for government to remove the ban. Farmers, traders and exports have suffered losses. Now we can reassert our dominance in the global rice market. After we stopped export, countries were buying the foodgrain from Pakistan, Thailand and Vietnam. Now we can regain the market. We have started getting calls for export,” said Suraj Agarwal, CEO of Kolkata-based entity, Rice Villa.
African countries, UAE, Saudi Arabia, Nepal and several western countries largely depend on Indian rice.
Government sources said with Food Corporation of India (FCI) having around 390 lakh tonne of rice, more than three times of the buffer stock requirement, there will be no problem to meet food security requirements even if there is no fresh procurement. “If because of global demand our farmers get better price than MSP then it’s good. But we will have the full procurement operation to buy paddy at MSP from farmers what they bring to mandis,” said a government official.
Traders said they have started receiving calls from overseas as soon as the government order became public. India is the world's biggest exporter of rice. The government had banned export of non-basmati white rice in July 2023 and had also imposed a 20% duty on parboiled rice export s amid fear of reduction in paddy production due to below-normal rainfall. Rice export was allowed only to some countries through diplomatic channels to meet their food security requirement.
Recently government also removed the ban on export of onion and MEP for basmati rice.
“There is enough stock of rice in the market and also with the govt. We will have a bumper crop . It was necessary for government to remove the ban. Farmers, traders and exports have suffered losses. Now we can reassert our dominance in the global rice market. After we stopped export, countries were buying the foodgrain from Pakistan, Thailand and Vietnam. Now we can regain the market. We have started getting calls for export,” said Suraj Agarwal, CEO of Kolkata-based entity, Rice Villa.
African countries, UAE, Saudi Arabia, Nepal and several western countries largely depend on Indian rice.
Government sources said with Food Corporation of India (FCI) having around 390 lakh tonne of rice, more than three times of the buffer stock requirement, there will be no problem to meet food security requirements even if there is no fresh procurement. “If because of global demand our farmers get better price than MSP then it’s good. But we will have the full procurement operation to buy paddy at MSP from farmers what they bring to mandis,” said a government official.
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