The move has amended the export policy for non-basmati white rice (semi-milled or wholly milled rice, whether polished or gazed).
Written By Nikita Prasad

The government on Saturday, September 28, removed the blanket ban on overseas shipments of non-basmati white rice and imposed a minimum export price (MEP) of $490 per tonne. Exports of non-basmati white rice have been banned since July 20, 2023, to boost domestic supply.

“The export policy for non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or gazed) …is amended from prohibited to free, subject to MEP of $490 per tonne with immediate effect and until further orders,” the directorate general of foreign trade (DGFT) said in a notification.

Govt eases export restrictions on non-basmati rice

With this, India has loosened restrictions on some rice exports, which may ease global prices and signal a shift in domestic agricultural policies following recent national elections. The MEP has lifted the ban on non-basmati white rice shipments. On Friday, authorities cut a tax on overseas sales of parboiled rice to 10 per cent from 20 per cent.

In a notification issued late Friday, the revenue department under the finance ministry said it has also reduced export duty on husked (brown rice), and rice in the husk (paddy or rough) to 10 per cent.

The export duty on these varieties of rice and non-basmati white rice has been 20 per cent so far. The notification said that these duty changes are effective September 27, 2024. Earlier this month, the government scrapped the minimum export price for basmati rice to boost outbound shipments and enhance farmers’ income.

India and Pakistan are the only growers of premium-grade basmati rice, and the Indian restrictions helped Pakistan gain market share in some categories. India’s basmati rice exports during April to July, the first four months of the fiscal year, jumped 20 per cent from a year ago to 1.9 million metric tons despite the MEP.

The country exported a record 5.2 million tons of rice last fiscal year as Canada, Iraq, Oman, Saudi Arabia, and the United Kingdom raised purchases, offsetting the impact of Iran’s lower buying. Unlike common grades of rice, basmati is not widely consumed in India, and unlike common grades of rice, the government does not buy the variety to build state reserves.

Published Date: September 28, 2024