The government has made a significant change in its order regarding the export of non-basmati rice. As per the notification by the Directorate General of Foreign Trade (DGFT), permission has been granted to export with certain conditions until October 30th.
In an effort to control the rising prices of rice, the government had previously imposed a ban on the export of rice last month. However, there has now been a substantial amendment in the government’s order regarding the export of non-basmati rice. DGFT has issued a notification in this regard, allowing exports with stringent conditions until October 30th.
Conditions for Export in Certain Cases In the modified order, the government has stated that if customs clearance was completed by July 20th at 9:57:01 PM, consignments were handed over, bills were paid, and export duties were settled, then exports may be allowed until October 30th. It is worth noting that the government had imposed an immediate ban on the export of non-basmati rice on July 20th. It was stated that exports without government permission would not be allowed.
It should be mentioned that there has been a trend of increasing rice prices in the domestic market. Prices in the retail market have risen by 11.5% compared to a year ago and 3% compared to the previous month. To reduce prices and ensure an adequate supply in the domestic market, a 20% export duty was imposed on non-basmati white rice on September 8, 2022. However, despite the imposition of the 20% export duty, exports of this type of rice increased from 33.66 lakh metric tons (September-March 2021-22) to 42.12 lakh metric tons (September-March 2022-23).
During the current fiscal year 2023-24, in the period from April to June, exports of 15.54 lakh metric tons of this type of rice were recorded, while during the same period in the fiscal year 2022-23, only 11.55 lakh metric tons of rice were exported, indicating a 35% increase. Several factors are responsible for this rapid growth in exports, including geopolitical outlook, El-Nino phenomenon, and challenging weather conditions in rice-producing countries worldwide.
Non-basmati white rice contributes 25% to the country’s total rice exports. Restricting the export of non-basmati white rice is aimed at reducing its prices for consumers in the country.
