India bans non-basmati rice export, price in Australia may rise

Trade experts believe that this decision will lead to the cancellation of orders worth almost 2 million metric tons of rice valued at $1.4 billion.

India, the world’s biggest rice exporter, has decided to amend the rice export norms putting the non-basmati white rice in the “prohibited” category.

It is understood this prohibition or ban on non-basmati white rice export is to stabilise domestic rice demand and price.

The Indian government said in a statement:

“In order to ensure adequate availability of non-basmati white rice in the Indian market and to allay the rise in prices in the domestic market, the government of India has amended the export policy.”

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India has seen domestic retail prices for non-basmati white rice go up 11.5% in 12 months while international sales of Indian rice soared by 35%.

Representative image: Rice (Source: CANVA)

India’s Directorate General of Foreign Trade (DGFT) notification said, “The export policy relating to non-basmati white rice (Semi-milled or wholly milled rice, whether or not polished or glazed: Other) has been revised from “free” to “prohibited” and it has come into force immediately. “

However, the DGFT also added that exports of such a variety of rice will be permitted under certain conditions where loading,

“has commenced before the issue of notification and where the shipping bill is filed and vessels have already berthed or arrived and anchored in Indian ports and their rotation number has been allocated before this notification”.

The approval of loading in such vessels will be issued only after confirmation by the concerned port authorities regarding anchoring/berthing of the ship for loading of Non-basmati rice prior to the Notification.

Trade experts believe that this decision will lead to the cancellation of orders worth almost 2 million metric tons of rice valued at $1.4 billion.

India caters to 40% of the supply and sells 500,000 tons of non-basmati rice every month. 

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Representative image: Rice (Source: CANVA)

Also, export will be allowed on the basis of permission granted by the government to other countries to meet their food security needs and based on the request of their government.

West African country Benin is one of the major importers of non-basmati rice from India. Other destination countries are Nepal, Bangladesh, China, Cote D’ Ivoire, Togo, Senegal, Guinea, Vietnam, Djibouti, Madagascar, Cameroon Somalia, Malaysia, Liberia, and UAE.

The Indian government has also extended a ban on wheat and sugar exports along with the ban on non-basmati white rice effective from 20 July.

India in September 2022 banned the exports of broken rice and imposed a 20 per cent duty on exports of non-Basmati rice, except for parboiled rice amid concerns about overestimated low production due to a fall in area under the paddy crop. It later lifted the ban in November. 

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