KATHMANDU, July 20: The Indian government has banned export of non-Basmati white rice amid concern over rice supply in the domestic market. The decision, outlined in a notification issued by the Directorate General of Foreign Trade (DGFT) on Thursday, amends the export policy of non-basmati white rice from free to prohibited.
However, the government will allow consignments of this rice to be exported under specific conditions, such as in cases where the loading process has already commenced before the notification was issued, according to Indian media reports.
Earlier, there were reports that the Indian government was considering a ban on exports of most rice varieties, which could potentially impact around 80 per cent of India's rice exports. While this measure may help stabilize rice prices within India, there are concerns about its potential negative effects on global rice prices.
India increases 20 percent customs duty on the export of rice a...
The uneven distribution of rainfall in key rice-growing areas of the country has resulted in a surge of up to 20% in the grain's prices over the last 10 days, according to Indian media reports. Additionally, soaring prices of rice exported from Vietnam, largely due to the El Nino weather pattern and anticipation of India's export restrictions, have been reported by Reuters.
Rice planting in India has been picking up pace with the revival in monsoon rainfall over the past fortnight. As the world's biggest rice exporter, India had previously implemented measures in September 2022, including banning overseas shipments of broken rice and imposing a 20% export duty on various other grades, to address production concerns.
However, the Rice Exporters Association (REA) of India has expressed differing views, asserting that the government is currently holding surplus stocks, surpassing the requirements for welfare schemes, and thus, there is no need for export restrictions.
In response to these developments, India's rice export prices have surged for the seventh consecutive week, reaching a five-year high, amid concerns of dwindling supplies and the potential ban on most rice varieties to combat inflation, Indian media reported.
