Govt bans non-basmati rice exports to check price spike
NEW DELHI : Days after Russia pulled out of the Black Sea grain deal, risking further global food inflation, the government on Thursday banned the export of non-basmati white rice in a bid to check rising prices. Mint on 18 July reported large companies, traders and exporters are rushing to secure letters of credit (LCs) for future shipments, fearing that rising prices may trigger export curbs on some varieties of non-basmati rice.
“Export policy of non-basmati white rice (semi-milled or wholly milled rice, whether polished or glazed)...is amended from free to prohibited," the DGFT said in a notification. The International Monetary Fund had warned that Russia’s exit from a deal allowing Ukrainian grain shipments via the Black Sea threatens to increase global food insecurity and could drive food prices higher, especially in low-income countries.
India, a dominant player in the global rice trade, has taken measures in recent months to strengthen control over the trade of certain rice varieties. The country enforced a ban on the export of broken rice in September 2022.
The government will allow consignments of white rice to be exported under certain conditions -- for instance if loading of the rice consignments on the ship had commenced before this notification.“Ban on non-Basmati Raw and steam rice will have major impact only on low priced thick grain rice (IR64/Ratna) which is exported much in raw form to poor countries like Africa. The same variety is procured by the government for PDS (public distribution system)," said Suraj Agarwal, CEO of Rice Villa, a rice brand.
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