In order to ensure adequate availability of non-basmati white rice in the Indian market and to appease the rising prices in the domestic market, the GOI has changed the export policy of the said variety from ‘Free with 20% export duty’ to ‘Banned’ with immediate effect.
Domestic rice prices are on the rise. Retail prices have increased by 11.5% in one year and by 3% in the last month.
A 20% export duty was imposed on non-basmati white rice on 08.09.2022 to lower the price and ensure availability in the domestic market. However, the export of this variety increased from 33.66 LMT (Sep-March 2021-22) to 42.12 LMT (Sep-March 2022-23) even after the imposition of the 20% export duty. In the current financial year 2023-24 (April-June), about 15.54 LMT of this rice variety was exported against only 11.55 LMT during the financial year 2022-23 (April-June), which is an increase of 35%. This large increase in exports can be attributed to the high international prices due to the geopolitical scenario, El Nino sentiments and extreme weather conditions in other rice-producing countries, etc.
Non-basmati white rice makes up about 25% of the country’s total rice exports. The export ban Non-Basmati white rice will lead to lower prices for the country’s consumers.
However, there is no change in the export policy of non-basmati rice (boiled par rice) and basmati rice, which forms the bulk of rice exports. This will ensure that farmers continue to benefit from lucrative prices on the international market.
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AD/NS