India Opens Door for Non-Basmati White Rice Exports
- India Authorizes Resumption of Non-Basmati White Rice Exports.
- India aiming to boost global rice supplies and potentially lower international prices.
- The minimum export price for non-basmati white rice is $490 per metric ton.
India has authorized the resumption of exports for non-basmati white rice, as announced on Saturday, with increasing inventories and farmers gearing up to harvest a new crop in the coming weeks. This decision is expected to enhance global rice supplies and potentially lower international prices by compelling major exporters like Pakistan, Thailand, and Vietnam to adjust their rates, according to traders.
The Indian government has set a minimum export price of $490 per metric ton for non-basmati white rice, just a day after eliminating the export tax on white rice altogether. This move aligns with recent actions to relax export restrictions on premium basmati and parboiled rice varieties. On Friday, the government also reduced the export duty on parboiled rice from 20% to 10%.
Earlier this month, India lifted the floor price for basmati rice exports, addressing concerns from farmers about limited access to profitable international markets in Europe, the Middle East, and the United States.
Following the El Niño weather pattern, which raised concerns about inadequate monsoon rains, India had previously imposed various export restrictions on rice to stabilize local prices ahead of the April-June national elections.
Since the ban on rice exports in 2023, domestic supplies have improved, leading to increased stocks in government warehouses. As of September 1, rice inventories held by the Food Corporation of India reached 32.3 million metric tons, a 38.6% increase from the previous year, providing the government with significant capacity to relax export restrictions.
Thanks to favorable monsoon conditions, farmers have cultivated rice on 41.35 million hectares (102.18 million acres), an increase from 40.45 million hectares (99.95 million acres) last year and above the five-year average of 40.1 million hectares (99.09 million acres).
The decision to allow non-basmati rice exports is anticipated to boost rural incomes and help India re-establish its presence in the global market, according to Rajesh Paharia Jain, a trader based in New Delhi. Despite the 10% export tax on parboiled rice and the set floor price, Indian white rice is expected to remain competitive internationally, as noted by B.V. Krishna Rao, president of the Rice Exporters’ Association.
