Centre bans exports of non-basmati rice to check local prices

The Centre has prohibited the export of non-basmati rice to curb price rise in the domestic market, the food department said in a statement. Retail prices of non-basmati rice have increased 3% in the past one month and 11.5% in the past year despite the imposition of 20% export duty since September 2022 to lower prices as well ensure availability in the domestic market.

“However, the export of this variety increased from 33.66 LMT (lakh metric tonnes) during September-March 2021-22 period to 42.12 LMT in September-March 2022-23 even after imposition of 20% export duty,” said the food department. “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%.”

The sharp increase in exports can be ascribed to factors such as high international prices due to the geopolitical scenario, El Nino sentiments and extreme climatic conditions in other rice producing countries, said the food department.

Non-basmati white rice constitutes about 25% of total rice exported from the country. However, there is no change in export policy of non-basmati rice (parboiled rice) and basmati rice, which forms the bulk of rice exports, according to the statement.

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