But India imposed a minimum export price of $490 per tonne.

India today withdrew the blanket ban on export of non-basmati white rice with immediate effect but imposed a minimum export price (MEP) of $490 per tonne.

The country has also slashed the export duty on parboiled rice to 10 percent from 20 percent, PTI reported quoting an official notification.

The ban by one of the world’s largest rice exporters was imposed in July 2023 in order to ensure adequate domestic supply and keep its prices under control.

“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 USD 490 per tonne with immediate effect and until further orders,” the Directorate General of Foreign Trade (DGFT) said in a notification.

Rice exporters welcomed the decision, terming it as a “game-changer” for the sector, our New Delhi correspondent reports.

“India’s bold decision to lift restrictions on non-basmati white rice exports is a game-changer for the agricultural sector,” said Rice Villa Chief Executive Officer Suraj Agarwal.

“This strategic move will not only boost the income of exporters but also of farmers who can expect higher returns with the impending arrival of the new kharif crop,” he said.

The lifting of the ban was on the cards as the stocks of the grain surged and farmers are set to harvest a new crop in the coming weeks.

The move comes after Indian Prime Minister Narendra Modi’s government implemented a series of farm measures in September to boost farmers’ incomes ahead of state assembly elections in Haryana and Maharashtra where growers are politically important.

Rice stocks at state-owned Food Corporation of India stood at 32.3 million metric tonnes as on September 1, some 38.6% higher than last year, allowing the government enough room to consider relaxing rice export curbs.

After a slow start in June, the monsoon in India revived in September with IMD pegging average or normal rainfall at 96 percent to 104 percent for the four-month-long season beginning in June.

Farmers plant summer-sown rice during the rainy months of June and July and harvest the crop from October.

Published Date: September 28, 2024