The Union government has decided to allow exports of non-basmati white rice with immediate effect, reversing last July’s ban on such exports. However, it has set a minimum export price of $490 per tonne.
According to a notification of the Department of Commerce issued on Saturday, non-basmati white rice (semi-milled or wholly-milled, whether or not polished or glazed) has been removed from the prohibited list for exports to free with immediate effect, subject to the minimum export price.
Explained | Understanding curbs on rice exports
In another notification issued on Friday, the Ministry of Finance reduced the duty on parboiled rice from 20% to 10%.
Trade revival
B.V. Krishna Rao, president of the Rice Exporters’ Association, told The Hindu that India was exporting 18 million tonnes of non-basmati rice annually before the restrictions were imposed last year. The export of premium varieties of white rice to markets such as Malaysia, Indonesia, and eastern Asian countries will now be revived, he predicted. “Exports dropped 50% because of the restrictions. We will get back some of the markets lost and the farmers will also benefit,” he said.
The reduction of duty on parboiled rice will also make exports attractive and relax the demand for this variety in the buying countries, he said.
Trade policy analyst S. Chandrasekaran added that the minimum support price (MSP) for rice is ₹23 per kg and noted that the ‘common rice’ purchased at MSP has now become eligible for exports. With the export policy amendment, rice exporters in the southern States will benefit, he said.
Published - September 28, 2024 10:44 am IST
