To ensure adequate domestic availability at reasonable prices.
In order to ensure adequate availability of Non-Basmati White Rice in the Indian market and to allay the rise in prices in the domestic market, Government of India has amended the Export Policy of above variety from ‘Free with export duty of 20 per cent’ 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.
Export duty of 20 per cent on non-basmati white rice was imposed on September 8 ,2022 to lower the price as well ensure availability in the domestic market. However, the export of this variety increased from 33.66 LMT (Sept-March 2021-22) to 42.12 LMT (Sept-March 2022-23) even after imposition of 20 per cent export duty. In the current FY 2023-24 (April-June), about 15.54 LMT of this variety of rice was exported against only 11.55 LMT during FY 2022-23 (April-June), i.e., an increase by 35 per cent. This sharp increase in exports can be ascribed to high international prices due to geo-political scenario, El Nino sentiments and extreme climatic conditions in other rice producing countries, etc.
Non-Basmati White Rice constitutes about 25 per cent of total rice exported from the country. 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.
