India’s dominance in global rice trade is expected to be restored with a spike in shipment especially to Africa and south-east Asian countries, after the government announced several measures such as removal of ban on white rice exports while imposing a minimum export price (MEP) of $490/ tonne and reduced exports tax on par-boiled rice to only 10%, exporters said.
BV Krishna Rao, president of the Rice Exporters’ Association, said that prior to the restriction on shipment imposed last year, India was exporting around 17 million tonne (MT) of non-basmati rice annually and exports of high value white rice varieties would get a boost now.
“Lifting ban on white rice exports would boost premium and high value non-basmati rice although instead of MEP an export tax of white rice could have been imposed,” Rao told FE by adding that often MEP regime is compromised.
Over the weekend, the government lifted a ban on non-basmati white rice exports and imposed a MEP of $ 490/tonne on it.
In addition the government had cut the export duty on parboiled rice to 10% to 20%. Only ban on broken rice shipment continues.
To curb rise in prices and improve domestic supplies, the government in September last year banned exports of white rice and subsequently imposed a 20% export duty on parboiled rice.
However,India had allowed white rice exports to meet the food security needs of many countries and on the basis of requests from their governments. In terms of volume, overall rice exports including basmati (5.24 MT) and non-basmati (11.1 MT) had declined by 27% to 16.34 MT in 2023-24against a record shipment of 22.34 MT in FY23. I
“Global rice prices will surely be impacted and will see a fall in prices as the world’s biggest exporter of rice comes back in the market quite strongly and this will further enable us to explore sale of branded regional rice products outside India,” Akshay Gupta, head of bulk exports, at KRBL,which exports Basmati rice to over 90 countries under ‘India Gate’ brand said.
Urging for lifting ban on broken rice exports, Ranjit Singh Jossan, vice president, rice millers and exporters association of Punjab, said that move to lift restrictions on non-basmati white rice exports will boost shipment of premium grain varieties – Sona Mussoorie, Gobindbhog, Jeera Kasal and PR-11 steamed rice.
The move to lift restriction on non-basmati rice exports follows the government abolishing the MEP of $ 950/tonne on Basmati rice exports on September 13.
The MEP on aromatic and long grain rice was imposed in October last year.
India has been the world’s biggest exporter of rice since 2012 and had around about 40% share in global trade 2022-23
The stock prices of the major rice companies – Kohinoor Food, ChamanLal Setia Exports and GRM overseas rose by 27.9%, 32.2% and 0.5% inBSE rose to Rs 49.92, Rs 304.65 and Rs 256.9 on Monday compared to price prevailed on September 13, when the government had removed MEP on basmati rice shipment.
From: financialexpress
Financial News
