Global Rice News

The government of India has stated that there are no plans to lift export restrictions on key agricultural commodities such as sugar, wheat, rice, and onions, according to food minister Piyush Goyal. Goyal made this announcement during an informal press briefing, emphasizing that the government is monitoring the supply situation closely. Current restrictions on the export of these essential food items have been put in place to ensure domestic availability and control rising prices, which have contributed to inflationary pressures.

Last year, the government banned the export of white rice and imposed a 20% export duty on par-boiled rice to improve domestic supplies. However, to meet the food security needs of developing countries, India has been providing rice upon request. Recently, rice has been supplied to countries like Indonesia, Senegal, and Gambia.

Despite the government’s efforts to sell surplus rice from the stock of the Food Corporation of India (FCI) in the open market, retail rice prices have increased by 12.33% in December. These elevated prices have persisted since October 2022. Goyal acknowledged these price increases and stated that appropriate measures will be taken to address the issue.

In contrast, wheat exports have been banned since May 2022. Goyal explained that importing wheat to fulfill domestic requirements is not necessary as the country is expected to achieve record wheat production of 114 million tonnes in the 2023-24 season, according to the first advance estimate by the agriculture ministry. Informal inquiries conducted in mandis across Punjab, Haryana, and Madhya Pradesh suggest that wheat output will be the highest ever, potentially leading to a collapse in wheat prices.

To curb price rises, the FCI has conducted weekly e-auctions of wheat from its surplus stock, selling a total of 6.2 million tonnes. As a result, retail inflation in wheat has decreased from 6.36% in November to 4.69% in December.

For the current season (October-September) of 2023-24, the government has not allocated any quota for sugar exports. In the previous season, India exported 6 million tonnes of sugar.

Regarding onion exports, Goyal stated that the government is purchasing onions directly from farmers and lifting restrictions on the shipment of this key vegetable would lead to a surge in domestic prices. The government aims to protect the interests of both farmers and consumers.

With the arrival of the kharif harvest, onion prices at Lasalgaon, Maharashtra, the country’s main wholesale trading hub, have fallen significantly. Prior to the imposition of the export ban on December 7, mandi prices ranged from ₹3,700–₹4,000/quintal. However, after the ban, prices have dropped to ₹1,500–₹1,800/quintal.

Source: Financial Express