In a bid to bolster domestic supply and regulate retail prices during the upcoming festive season, the Indian government has implemented a ban on exports of non-basmati white rice. The ban specifically targets semi-milled or wholly milled rice, whether polished or glazed, which constitutes about 25% of the country’s total rice exports.

The Directorate General of Foreign Trade (DGFT) issued a notification stating that the export policy of non-basmati white rice has been amended from “free” to “prohibited” with immediate effect. However, the export policy for par-boiled non-basmati rice and basmati rice, which form the majority of rice exports, remains unchanged.

The decision to restrict non-basmati white rice exports was taken to ensure sufficient availability in the domestic market at reasonable prices. The government noticed an upward trend in domestic rice prices, with retail prices increasing by 11.5% over the past year and 3% over the last month.

Previously, in September 2022, a 20% export duty was imposed on non-basmati white rice to manage prices and maintain an adequate supply within the country. However, despite this duty, exports of non-basmati white rice saw a sharp increase of 35% in the first quarter of the current fiscal year (2023) compared to the same period the previous year. Factors contributing to this rise include higher international prices due to geopolitical scenarios, El Nino effects, and extreme climatic conditions in other rice-producing nations.

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The prohibition on non-basmati white rice exports is expected to lower prices for consumers in India, benefiting them during the festive season. However, it is important to note that exports of non-basmati rice (par-boiled rice) and basmati rice, which make up the bulk of rice exports, will not be affected by this ban. This ensures that farmers can continue to receive competitive prices in the international market.

India’s total exports of basmati rice amounted to USD 4.8 billion in 2022-23, with a volume of 45.6 lakh tonnes, while non-basmati rice exports reached USD 6.36 billion in the same fiscal year, with a volume of 177.9 lakh tonnes. Major destinations for non-basmati white rice exports from India include Thailand, Italy, Spain, Sri Lanka, and the USA.

The DGFT notification includes certain exceptions to the export ban. Consignments of non-basmati white rice may be allowed for export under specific conditions, such as when the loading of rice onto the ship has commenced before the notification. Exports will also be permitted based on the government’s permission to other countries to meet their food security needs, upon the request of their respective governments.

Additionally, consignments that have been handed over to customs before the notification and are registered in the customs system will be allowed for export. The DGFT has also extended the last date for submission of applications for obtaining a license for the export of broken rice to Senegal, Gambia, and Indonesia until July 27 this year.