India greenlights the export of 9 lakh tonnes of broken rice to five countries, along with a substantial wheat and wheat products allocation to Bhutan. The Ministry of Commerce withdraws previous guidelines, paving the way for these strategic exports, while legal challenges prompt the rescinding of earlier trade notices. Specific allocations include 5 lakh tonnes to Senegal, 2 lakh tonnes to Indonesia, 1 lakh tonne to Mali, and 50,000 tonnes to Gambia—all subject to a six-month shipping window.

Highlights

Export Allowance: India has permitted the export of nearly 9 lakh tonnes of broken rice to five countries and over 34,000 tonnes of wheat and wheat products to Bhutan. This decision was facilitated through the National Cooperative Exports Limited (NCEL).

Withdrawal of Guidelines: The Ministry of Commerce withdrew guidelines established in June-July regarding the allocation of quotas for broken rice, wheat, and wheat products. This was done in response to government-to-government requests from other nations on humanitarian and food security grounds.

Rescinded Notices: The Directorate General of Foreign Trade (DGFT) rescinded previous trade notices (Trade Notice No. 08/2023, Trade Notices No. 17/2023, and 18/2023) following the notification on November 30.

Export Allocations: Specific allocations were made to different countries. Senegal received 5 lakh tonnes of broken rice with a condition to ship it within six months, while Indonesia received 2 lakh tonnes, and Mali received 1 lakh tonnes. Gambia was allocated 50,000 tonnes of broken rice with the same six-month shipping condition. Bhutan received 48,804 tonnes of Indian rice through NCEL.

Wheat and Wheat Products: Apart from rice, permissions were granted for the export of 14,184 tonnes of wheat, 5,326 tonnes of atta, and 15,226 tonnes of maida/sooji to Bhutan.

Export Bans and Caution: There has been an ongoing ban on the export of raw rice, broken rice, wheat, and wheat products. India is cautious about lifting this ban due to concerns regarding the impact of El Nino, which may persist until June of the following year. This caution stems from below-normal monsoon rainfall in 2023 and an exceedingly dry August, which impacted crop production.

Conclusion

India’s dynamic export decisions, driven by government-to-government requests, showcase its flexibility in adapting trade policies. The allocation specifics underscore diplomatic ties, and while bans on certain exports persist, the cautious approach reflects India’s weather-related concerns affecting crop yields. The surge in wheat exports to Bhutan not only strengthens regional relations but also positions India as a key player in global food trade dynamics.

Published Date: December 4, 2023