In a humanitarian gesture, India has given the green light for the export of 1.34 million tonnes of non-basmati white rice to seven Asian and African countries. The Directorate General of Foreign Trade announced that India will provide the following quantities of white rice exports to the respective nations:
- Nepal: 95,000 tonnes
- Cameroon: 190,000 tonnes
- Malaysia: 170,000 tonnes
- The Philippines: 295,000 tonnes
- Cote d’Ivoire: 142,000 tonnes
- Republic of Guinea: 142,000 tonnes
- Seychelles: 800 tonnes
These exports are being permitted despite the export ban on rice imposed on July 20. The rice will be exported through the National Cooperative Exports Ltd, a government export body established under the Multi-State Cooperative Societies Act, 2002, to facilitate the export of agricultural produce and related items.
This move is aimed at providing humanitarian assistance to countries facing food insecurity and is part of India’s efforts to support its neighboring nations and strengthen international ties. Earlier, India had approved limited quantities of non-basmati white rice exports to Bhutan, Mauritius, Singapore, and the UAE.
Despite these humanitarian intentions, the export of rice may impact domestic food prices, especially given the recent deficient monsoon during August. This export decision comes at a time when India has taken several measures to curb rising food prices, including the imposition of a 20% duty on parboiled rice, extended until March 2024. The government had initially amended the export policy in July to restrict rice exports.
Prime Minister Narendra Modi has expressed his commitment to reducing inflation, a priority as the nation prepares for general elections expected to take place by May.
The International Monetary Fund (IMF) had encouraged India to lift restrictions on rice exports in certain categories, citing their potential impact on global inflation. However, the Indian government maintains that the export ban is necessary to ensure an adequate supply of non-basmati white rice in the domestic market and to stabilize prices.
The move to export non-basmati white rice to countries in need is expected to alleviate pressure on the global market and help reduce prices to some extent. The retail inflation of rice, with a weightage of 4.4%, has gradually decreased, falling to nearly 12% in September from 12.5% in August 2023 and 9.2% in September 2022.
