AgriGuru News - Government Considered Relaxation of Rice Export Ban

The government is considering easing its year-old export ban on non-basmati white rice due to surplus stocks and a surge in paddy cultivation, according to the Union Minister for Consumer Affairs, Food, and Public Distribution. The ban, implemented on 20 July 2023, aimed to maintain domestic stock levels and stabilize prices.

A potential relaxation of the ban could benefit farmers, traders, and exporters looking to capitalize on the high global demand for Indian rice. This move would also provide relief to rice-importing nations urging India to lift the restrictions. Currently, only basmati rice can be exported above a set floor price, while parboiled rice is subject to a 20% export duty, and non-basmati and broken rice exports remain completely prohibited.

"We all witnessed the impact of El Niño last year, but despite the challenges, we managed to keep food inflation under control," said an expert. The minister added that despite El Niño’s potential effects, last year's rice production was strong. He confirmed that the government is now reconsidering the export restrictions, citing the country's ample grain reserves and ability to meet both domestic and international demand.

As reported by *Mint* on 6 August, the ban on non-basmati white rice exports may be lifted due to favorable rains and improved paddy cultivation this year. The export restrictions have significantly impacted India's trade, with rice exports dropping nearly 34% to 3.2 million tonnes (mt) during April-June. Exports of non-basmati white rice fell by 78% to approximately 300,000 tonnes, while broken rice exports declined by 8%, also to 300,000 tonnes. Parboiled rice exports saw an 11% drop, reaching 1.5 mt.

The All India Rice Exporters Association acknowledged the success of the ban in controlling rice inflation, but emphasized that the government should now reassess the policy given the improved rice supply. As of 23 August, agriculture ministry data shows that paddy sowing has increased by 16%, reaching 39 million hectares, while pulse sowing has grown by 7% to 12 million hectares.