In other major decisions for farmers, the Cabinet approved extension for additional subsidy on di-ammonium phosphate (DAP), and also enhanced the allocation for PM Fasal Bima Yojana.

 Moneycontrol News

The Indian government has signed an agreement with Indonesia to export 10 lakh metric tonne of non-basmati white rice, Agriculture Minister Shivraj Singh Chauhan informed during a press conference on January 1, a move that he said will help farmers get better rates for their produce.

In July 2023, Centre had put a curb on the export of non-basmati white rice, in order to stabilize domestic prices. This ban was lifted in September 2024 with a minimum export price (MEP) to regulate outbound shipments. This MEP of $490 per tonne was also removed in October. The decision reflected that India – world’s biggest rice exporter – has ample buffer stock of rice in government godowns, and retail prices are under control. India exported $852.52 million worth of non-basmati white rice in 2023-24.

In the past, India’s non-basmati rice exports used to reach over 140 countries, and key importers included nations in Africa, South Asia, and the Middle East. India accounted for over 40% of the global rice exports in 2022, totaling 22.2 million metric tonne.

Agriculture Minister Shivraj Singh Chouhan also said on Wednesday that India’s agriculture and allied sector is expected to grow at 3.5-4 per cent in 2024-25, marking a significant improvement from the 1.4 per cent rise seen in FY24. “The New Year has brought good news that the growth rate of agriculture and allied sector is likely to be 3.5 to 4 per cent this year,” Chouhan said.

The Reserve Bank of India in latest monthly bulletin released on December 24 too had said that the prospects of agriculture output as well as rural consumption are looking up for farmers.

“Sowing of key kharif crops are higher than last year and the long-period average. Sufficient buffer stocks for cereals are available for ensuring food security. Adequate reservoir levels, the likelihood of a good winter and favorable soil moisture conditions augur well for the ensuing rabi
season, though adverse weather events remain a risk,” RBI’s MPC meeting minutes had noted in December.

In other major decisions for farmers taken on January 1, the Cabinet approved extension for additional subsidy on di-ammonium phosphate (DAP), and also enhanced the allocation for PM Fasal Bima Yojana.

Published Date: January 1, 2025