NRIs in the United States are queuing in front of supermarkets to stock up their staple food as the Indian government announced a ban on the export of non-basmati white rice to control domestic retail prices.
Long lines were reported at stores across the US as Indians queued up to hoard rice following government's decision to ban its export. The Businessline reported that Indian white rice now costs nearly $50 per 20 lb. The North American market, which includes the US and Canada, imported 64,330 tonnes of non-basmati rice from India in 2022-23, the publication reported. According to reports, in 2022-23, India exported 17.78 million tonnes of non-basmati rice and 17.26mt in 2021-22.
The government on Thursday banned exports of non-basmati white rice to boost domestic supply and keep retail prices under check during the upcoming festive season.
There would be no change in the export policy of par-boiled non-basmati rice and basmati rice, which forms the bulk of exports, the food ministry said in a statement.
Non-basmati white rice constitutes about 25 per cent of total rice exported from the country. The total exports of non-basmati white rice from India was $4.2 million in 2022-23 as against $2.62 million in the preceding year. Major destinations of India's non-basmati white rice exports include Thailand, Italy, Spain, Sri Lanka and the USA.
"Export policy of non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or glazed)...is amended from free to prohibited," the directorate general of foreign trade (DGFT) said in a notification.
"Export policy of Non-Basmati White Rice amended to ensure adequate domestic availability at reasonable prices," the ministry said, adding, the move is aimed to ensure lower prices and adequate availability in the upcoming festival season.
In order to ensure adequate availability of non-basmati white rice in the domestic market and to allay the rise in local prices, the government has amended the export policy from 'Free with export duty of 20 per cent' to 'Prohibited' with immediate effect.
"The domestic prices of rice are on an increasing trend. The retail prices have increased by 11.5 per cent over a year and 3 per cent over the past month," the statement said.
Export duty of 20 per cent on non-basmati white rice was imposed on September 8, 2022, to lower the price and to ensure availability in the domestic market.
"This will ensure that the farmers continue to get the benefit of remunerative prices in the international market," it added. As per the DGFT notification, the consignments of this variety of rice will be allowed to be exported under certain conditions such as where loading of rice on the ship has commenced before this notification.
Export will also be allowed on the basis of permission granted by the government to other countries to meet their food security needs and based on the request of their governments, it added.
(With PTI inputs.)
