Government may relax Export Ban on Non-Basmati White Rice amid surplus

The Indian government is considering relaxing its year-old export ban on non-basmati white rice due to an excess in stock and a significant increase in paddy sowing, according to Union Minister for Consumer Affairs, Food, and Public Distribution Pralhad Joshi. The export ban, which came into effect on July 20, 2023, was initially implemented to ensure sufficient domestic stock and to manage rice prices. A potential easing of this ban would benefit farmers, traders, and exporters who are eager to leverage the high global demand for Indian rice. It would also provide relief to rice-consuming nations that have been requesting the Indian government to lift the restrictions. Currently, basmati rice can only be exported above a specified floor price, parboiled rice is subject to a 20% export duty, and non-basmati and broken rice exports are entirely prohibited. Joshi highlighted the situation, saying, �We all know what happened due to El Ni�o last year. However, despite that, we were able to keep food inflation well under control. Our paddy/rice production was robust last year. There is now a demand to allow exports of non-basmati rice, given the restrictions were imposed considering the adverse effects of El Ni�o.� He added that the government is contemplating whether to permit such exports as the country has ample food grain stocks to meet both domestic and international needs.

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