Government lifts export restrictions on non-Basmati white rice

The Indian government has lifted the minimum export price (MEP) of $ 490 per tonne on non-basmati white rice, encouraging increased shipments of the commodity to international markets. This decision was announced by the Directorate General of Foreign Trade (DGFT) in a notification on Wednesday.

Previously, the government had banned exports of non-basmati rice on July 20, 2023, before relaxing restrictions on September 28, when it initially imposed the MEP. The recent removal of the price floor aims to further promote the export of this widely consumed variety of rice, which is also in demand globally, especially among countries with significant Indian diasporas.

With ample rice stocks stored in government warehouses and retail prices stable, the government is optimistic about boosting exports. The country exported non-basmati white rice worth USD 201 million during the April-August period of the current fiscal year, compared to USD 852.52 million for the entire 2023-24 period.

Although there had been a blanket ban on exports, the government permitted shipments to friendly nations, including the Maldives, Mauritius, the UAE, and various African countries.
This policy change comes amidst ongoing disruptions in the global food supply chain, largely attributed to the conflict between Russia and Ukraine. The government had previously removed the minimum export price for basmati rice to enhance farmers' income and stimulate outbound shipments.

The lifting of these restrictions is expected to facilitate greater trade opportunities for Indian farmers and strengthen the country’s position in the global rice market.