Government sanctions 1.34 million ton non-basmati white rice exports to seven countries in Asia and Africa
Published on: October 15, 2023.
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Non-Basmati White Rice Exports Approved by Government
The government has greenlit the exportation of 1.34 million tonnes (MT) of white broken rice to seven countries in Asia and Africa. These countries are Philippines, Malaysia, Cameroon, Ivory Coast, Nepal, and include others. The exportation will be carried out under the National Cooperative Export Ltd (NCEL).
An imminent announcement from the Directorate General of Foreign Trade is anticipated, formalising this decision made by the food ministry and the inter-ministerial committee. The committee regularly reviews the availability and costs of essential commodities.
Previously on July 20, white rice exports were regulated to fortify local supplies, but the embargo has been lifted to meet the food security demands of developing countries via a government-to-government (G2G) route.
Export Quantities Destined for Different Countries
The quantity of non-basmati rice approved for export varies from destination to destination. The quantities are as follows:
- Philippines: 0.29 MT
- Cameroon: 0.19 MT
- Malaysia: 0.17 MT
- Ivory Coast: 0.14 MT
- Guinea: 0.14 MT
- Nepal: 95,000 tonnes
- Seychelles: 800 tonnes
Last month, the government had also consented for the export of 75,000 tonnes of non-basmati rice to the United Arab Emirates via NCEL, and the export of 0.14 MT of white rice to Bhutan, Singapore, and Mauritius.
A senior official from the food ministry has shed light on the fact that rice export from Pakistan circumstances will be evaluated after observing the rice harvest for the current kharif season. A decision about liberalising exports will be taken only next year.
New Export Duty Extension Announced
In an attempt to improve local supplies and discourage exports, the government entrenched the 20% export duty on parboiled rice for two more years, i.e., till March 31, 2024. This decision follows the initial announcement of the duty in August.
In 2022-23, India’s export of almost 7.5 MT of parboiled rice was primarily to sub-Saharan Africa. Subsequently, in September 2022, India prohibited broken rice exports.
Efforts to Regulate Rice Prices and Ensure Supplies
Retail rice prices have seen an increase of 11.9% in September, somewhat lower than the previous month. The Food Corporation of India seeks to reduce the prices with plans to sell 2.5 MT of rice from its surplus stock in the open market by the year’s end.
India has been a leading rice exporter worldwide for the past decade, contributing more than 40% to the annual global rice trade of 55 MT.
Impact on India’s Rice Exports
In FY23, a monumental 17.78 MT of non-basmati rice was exported by India, valued at around $6.35 billion. However, the current fiscal has seen a 15% decrease in the same from the comparable period in the previous year, with exports having reached only 6.45 MT from April to August.
The US department of agriculture has predicted a decrease in India’s rice exports to 17.5 MT for the existing fiscal, down from an extraordinary 22 MT in FY23. This decline is attributed largely to the restrictions on exports and lower production prospects.
Source: https://www.financialexpress.com
