It has been noticed that despite restrictions on certain varieties, rice exports have been high during the current year
To check the domestic prices and to ensure domestic food security, the Government has been taking measures to restrict the export of rice from India. The export of non-basmati white rice was prohibited on 20th July 2023.
It has been noticed that despite restrictions on certain varieties, rice exports have been high during the current year. Up to 17th August 2023, total exports of rice (other than broken rice, export of which is prohibited) were 7.33 MMT compared to 6.37 MMT during the corresponding period of the previous year, registering an increase of 15.06 per cent. There has been a spurt in the export of parboiled rice and Basmati rice; both of these varieties did not have any restrictions on exports. While the export of parboiled rice has grown by 21.18 per cent (3.29 MMT during the current year compared to 2.72 MMT during the previous year), the export of Basmati rice has increased by 9.35 per cent (1.86 MMT during the current year compared to 1.70 MMT during the previous year). Export of non-basmati white rice, which had an export duty of 20 per cent since 9th September 2022 and has been prohibited w.e.f. 20th July 2023, has also registered an increase of 4.36 per cent (1.97 MMT compared to 1.89 MMT during the previous year). On the other hand, as per the third Advanced Estimate of the Department of Agriculture & Farmers Welfare, during the Rabi Season 2022-23, the production was only 158.95 LMT against 184.71 LMT during the Rabi Season of 2021-22 i.e., there was a decline of 13.84 per cent.
Internationally, due to strong demand from Asian buyers, production disruptions registered in 2022/23 in some major producing countries like Thailand, and fears of possible adverse effects of the onset of El Nino, international rice prices have also been rising continuously since last year. The FAO Rice Price Index reached 129.7 points in July 2023; its highest value since September 2011, registering an increase of 19.7 per cent over last year’s levels. As the prices of Indian rice are still cheaper than the international prices, there has been a strong demand for Indian rice, resulting in record exports during 2021-22 and 2022-23.
The Government has received credible field reports regarding misclassification and illegal export of non-basmati white rice, the export of which has been prohibited with effect from 20th July 2023. It has been reported that non-basmati white rice is being exported under the HS codes of parboiled rice and Basmati rice.
