Will India resume export of non-basmati rice? Decision likely this week

By Abhimanyu Sharma

India, the world’s largest exporter of rice exporter, may review the decision to ban the export of non-basmati rice, a year after it was imposed to control domestic prices.A Group of Ministers (GoM) led by Home Minister Amit Shah is likely to examine the proposal. Sources told CNBC-TV18 that a final decision is likely this week.

Some of the recommendations on the table include the following:1. Allow export of non-basmati rice with a minimum export price,2. Remove duty on the export of parboiled riceThe decision would be based on the assessment of the rice crop and whether there’s enough buffer stock to meet demand for two years.

On July 5, many exporters had appealed to the Ministry of Commerce to lift the ban citing loss of market share to players from Thailand and Pakistan.India banned the export of rice in July 2023 to control inflation. However, some exports, in limited quantities, were allowed later, subject to conditions.For example, any sale from the Indian government to other governments was allowed.

The government had allowed basmati rice exports as long as they were priced at $1,200 a tonne or more.Several rice exporters from Punjab, Haryana, and Uttar Pradesh had urged the inter-ministerial committee to reduce the minimum export price for basmati rice to boost export competitiveness. They said that the high export price has led to a fall in orders at global food fairs

In 2022, India exported 22.2 million tonnes of rice. Of that, 17.86 million tonnes non-basmati rice. The major rice-producing states in India are Punjab, Chhattisgarh, Odisha, Andhra Pradesh, West Bengal and Uttar Pradesh have a stake in this decision.Rice exports fell to 15.7 million tonnes in the financial year ending March 2024 because of the government ban. Countries that imported most of their rice from India include Malaysia, Singapore, Djibouti, Qatar, and Iraq, among others.

This article has been republished from The CNBCTV 18.