The ban on exports of non-basmati white rice might be lifted soon as concerns about the standing crop have eased, according to major exporters.
Anil Kumar Mittal, chairman and managing director of Khushi Ram Behari Lal Limited (KRBL), a rice export company, said, “Monsoon rains have been adequate so far, and kharif paddy sowing has surpassed last year’s level. The government might lift the white rice exports ban soon.”
He said that the International Monetary Fund (IMF) and the Food and Agriculture Organisation (FAO) had asked India to lift restrictions on the export of white rice as it has led to an increase in global rice prices, according to a report in the Financial Express (FE).
V Krishna Rao, president of the Rice Exporters Association, a body of non-basmati exporters, said that after the procurement of paddy starts, the government might assess the supply situation by December and consider lifting the ban.
He added that due to the rice export ban, Vietnam and Thailand had hiked grain prices.
Rice prices increase by 15%
Mittal said that domestic rice prices have increased by 15 per cent in the last four months, but the prices might fall after kharif harvesting starts in September and October.
By August 4, rice had been harvested in 28.3 million hectares, according to the FE report.
As of August 1, the Food Corporation of India (FCI) had rice stocks of 37.64 million tonnes (MT), which includes 13.01 MT of grain to be received from millers, which is far above the buffer norm of 10.25 MT for October 1.
India, the biggest rice exporter since 2012, imposed a ban on white rice exports on July 20. This was done to contain cereal inflation, which has remained in double digits since October last year.
In September last year, India imposed a ban on broken rice exports and put a 20 per cent export tariff on non-basmati and non-parboiled rice, aimed at improving domestic supplies.
India exports rice to 140 countries
However, in FY23, India exported a record 22.34 MT of rice to more than 140 countries.
The United States Department of Agriculture (USDA) stated that “India remains the lowest priced Asian exporter and expected to again be the largest exporter, shipping a record 23 MT in 2023-24”.
In October 2022, retail inflation in rice was reported at 10.21 per cent, which rose to 11.78 per cent in June this year.
