iNDICA NEWS BUREAU–
The Indian government on Thursday amended the rice export norms putting the non-basmati white rice in “prohibited” category.
The export policy relating to non-basmati white rice (Semi-milled or wholly milled rice, whether or not polished or glazed: Other) has been revised from “free” to “prohibited” and it has come into force immediately, a Directorate General of Foreign Trade (DGFT) notification said.
However, Directorate General of Foreign Trade said exports of such variety of rice will be permitted under certain conditions where loading “has commenced before the issue of notification and where the shipping bill is filed and vessels have already berthed or arrived and anchored in Indian ports and their rotation number has been allocated before this notification”.
The approval of loading in such vessels will be issued only after confirmation by the concerned port authorities regarding anchoring/berthing of the ship for loading of Non-basmati rice prior to the Notification.
Also, export will be allowed on the basis of permission granted by the government to other countries to meet their food security needs and based on the request of their government.
West African country Benin is one of the major importers of non-basmati rice from India. Other destination countries are Nepal, Bangladesh, China, Cote D’ Ivoire, Togo, Senegal, Guinea, Vietnam, Djibouti, Madagascar, Cameroon Somalia, Malaysia, Liberia, and UAE.
India in September 2022 banned the exports of broken rice and imposed a 20 per cent duty on exports of non-Basmati rice, except for parboiled rice amid concerns about overestimated low production due to a fall in area under the paddy crop. It later lifted the ban in November.
A statement from the ministry of consumer affairs, food and public distribution said, “Export duty of 20% on non-basmati white rice was imposed on 08.09.2022 to lower the price as well ensure availability in the domestic market. However, the export of this variety increased from 33.66 LMT (Sept-March 2021-22) to 42.12 LMT (Sept-March 2022-23) even after imposition of 20% export duty. In the current FY 2023-24 (April-June), about 15.54 LMT of this variety of rice was exported against only 11.55 LMT during FY 2022-23 (April-June), i.e. an increase by 35%. This sharp increase in exports can be ascribed to high international prices due to geo-political scenario, El Nino sentiments and extreme climatic conditions in other rice producing countries, etc.”
It further said, “Non-Basmati White Rice constitutes about 25% of total rice exported from the country. The prohibition on export of Non-Basmati White Rice will lead to lowering of prices for the consumers in the country. However, there is no change in Export policy of Non Basmati Rice (Par Boiled Rice) and Basmati Rice, which forms the Bulk of Rice exports. This will ensure that the farmers continue to get the benefit of remunerative prices in the international market.”
