Highlights

  • Govt bans exports of non-basmati white rice to boost domestic supply, help control price
  • Export duty of 20% on non-basmati white rice was imposed on Sep 8, 2022 to lower the price as well as ensure availability in domestic market

Latest news

India, Russia are embarking on new journey of innovation, co-production and co-creation: PM Modi

India, Russia are embarking on new journey of innovation, co-production and co-creation: PM Modi

India is conducting independent and sovereign policy under leadership of PM Modi,  achieving very good results: President Putin

India is conducting independent and sovereign policy under leadership of PM Modi, achieving very good results: President Putin

Indian businesses can replace void left by Western companies in Russia, says Roscongress CEO Stuglev

Indian businesses can replace void left by Western companies in Russia, says Roscongress CEO Stuglev

Regulator DGCA eases flight duty norms for pilots amid IndiGo crisis

Regulator DGCA eases flight duty norms for pilots amid IndiGo crisis

Dalai Lama launches 'Forest Resources in India' focused on climate, conservation and community

Dalai Lama launches 'Forest Resources in India' focused on climate, conservation and community

RBI raises FY26 GDP growth projection to 7.3 pc

RBI raises FY26 GDP growth projection to 7.3 pc

AAP to hold farmers’ Mahapanchayat in Gujarat's Amreli on December 7 amid crop loss crisis

AAP to hold farmers’ Mahapanchayat in Gujarat's Amreli on December 7 amid crop loss crisis

OnePlus marks 12 years in India with a new six-star lineup for the 15R reveal

OnePlus marks 12 years in India with a new six-star lineup for the 15R reveal

Here's why govt bans exports of non-basmati white rice

Non-basmati white rice constitutes about 25 per cent of total rice exported from the country

Here's why govt bans exports of non-basmati white rice

The government on Thursday banned exports of non-basmati white rice to boost domestic supply and keep retail prices under check during the upcoming festive season.

There would be no change in export policy of par-boiled non-basmati rice and basmati rice, which forms the bulk of exports, the food ministry said in a statement.

Non-basmati white rice constitutes about 25 per cent of total rice exported from the country.

"Export policy of non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or glazed)...is amended from free to prohibited," the directorate general of foreign trade (DGFT) said in a notification.

"Export policy of Non Basmati White Rice amended to ensure adequate domestic availability at reasonable prices," the ministry said, adding, the move is aimed to ensure lower prices and adequate availability in the upcoming festival season.

Also read/watch| ITC becomes 7th Indian firm to cross ₹6 lakh crore m-cap; here's a list of first six names

In order to ensure adequate availability of non-basmati white rice in the domestic market and to allay the rise in local prices, the government has amended the export policy from 'Free with export duty of 20%' to 'Prohibited' with immediate effect.

"The domestic prices of rice are on an increasing trend. The retail prices have increased by 11.5 per cent over a year and 3 per cent over the past month," the statement said.

Export duty of 20 per cent on non-basmati white rice was imposed on September 8, 2022 to lower the price as well as ensure availability in the domestic market.

However, the export of this variety increased to 42.12 lakh tonnes in September-March period of the 2022-23 from 33.66 lakh tonnes during September-March period of the previous fiscal.

In the first quarter of the current fiscal, about 15.54 lakh tonnes of white rice was exported against only 11.55 lakh tonnes in the year-ago period, which means an increase by 35 per cent.

"This sharp increase in exports can be ascribed to high international prices due to geopolitical scenario, El Nino sentiments and extreme climatic conditions in other rice producing countries, etc.," the statement said.

The prohibition on export of non-basmati white rice will lead to lowering of prices for the consumers in the country.

However, there is no change in export policy of non-basmati rice (par boiled rice) and basmati rice, which forms the bulk of rice exports.

"This will ensure that the farmers continue to get the benefit of remunerative prices in the international market," it added.

As per the commerce ministry data, India's total exports of basmati rice stood at USD 4.8 billion in 2022-23, while in volume terms it was at 45.6 lakh tonnes.

Similarly, exports of non-basmati stood at USD 6.36 billion in the last fiscal. In volume terms it was 177.9 lakh tonnes.

Major destinations of India's non-basmati white rice exports include Thailand, Italy, Spain, Sri Lanka and the USA.

As per the DGFT notification, the consignments of this variety of rice will be allowed to be exported under certain conditions such as where loading of rice on the ship has commenced before this notification.

Export will also 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 governments, it added.

The DGFT also said that exports are permitted for those consignments 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," it said.

The exports are also allowed where the consignment has been handed over to the customs before this notification and is registered in their system.

Separately, the directorate said that it has extended the last date for submission of application for obtaining licence for export of broken rice to Senegal, Gambia and Indonesia till July 27 this year.

ADVERTISEMENT

Up Next

Here's why govt bans exports of non-basmati white rice

Here's why govt bans exports of non-basmati white rice

RBI trims policy interest rate by 25bps to 5.25pc, loans to get cheaper

RBI trims policy interest rate by 25bps to 5.25pc, loans to get cheaper

Rupee slumps to all-time low of 90.25 against US dollar in intra-day trade

Rupee slumps to all-time low of 90.25 against US dollar in intra-day trade

Reliance completes merger of Star Television Productions with Jiostar

Reliance completes merger of Star Television Productions with Jiostar

India to lead emerging market growth with 7pc GDP rise in 2025: Moody’s

India to lead emerging market growth with 7pc GDP rise in 2025: Moody’s

Nifty hits record high after 14 months; Sensex nears all-time peak

Nifty hits record high after 14 months; Sensex nears all-time peak

ADVERTISEMENT

editorji-whatsApp

More videos

Reliance stops Russian oil use at its only-for-export refinery to comply with EU sanctions

Reliance stops Russian oil use at its only-for-export refinery to comply with EU sanctions

ED attaches fresh assets worth over Rs 1,400 cr in case against Anil Ambani's Reliance Group

ED attaches fresh assets worth over Rs 1,400 cr in case against Anil Ambani's Reliance Group

India signs one-year deal to import 2.2 million tonnes of LPG from US

India signs one-year deal to import 2.2 million tonnes of LPG from US

India International Trade Fair begins at Pragati Maidan amid tight security

India International Trade Fair begins at Pragati Maidan amid tight security

Stock markets decline in initial trade on foreign fund outflows, weak Asian peers

Stock markets decline in initial trade on foreign fund outflows, weak Asian peers

Amazon to lay off 30,000 office workers amid AI-driven cost cuts

Amazon to lay off 30,000 office workers amid AI-driven cost cuts

US sanctions on Russian firms to hit Reliance; PSUs likely to keep buying Russian oil via traders

US sanctions on Russian firms to hit Reliance; PSUs likely to keep buying Russian oil via traders

Dream debut: LG Electronics India shares jump over 50 pc

Dream debut: LG Electronics India shares jump over 50 pc

One GB wireless data in India costs less than a cup of tea: PM Modi

One GB wireless data in India costs less than a cup of tea: PM Modi

Power struggle in Tata Trusts: Trustees clash over board appointments

Power struggle in Tata Trusts: Trustees clash over board appointments

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.