Asia Press Agency

Tag: rice exports

  • India Allows Limited Rice Exports for Humanitarian Aid

    India Allows Limited Rice Exports for Humanitarian Aid

    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.

  • India Permits Export of Non-Basmati White Rice to UAE

    India Permits Export of Non-Basmati White Rice to UAE

    In a recent move aimed at balancing domestic supply concerns with international trade, the Indian government has given the green light for the export of 75,000 tons of non-basmati white rice to the United Arab Emirates (UAE). The Directorate General of Foreign Trade (DGFT) announced this decision, emphasizing that the export would be facilitated through the National Cooperatives Exports Limited (NCEL).

     

    This decision follows India’s earlier ban on the export of non-basmati white rice, which was implemented to ensure an adequate domestic supply of rice, especially amidst sticky inflation and the anticipation of an erratic monsoon season. However, the government has maintained a nuanced approach, allowing exports of non-basmati rice and other grains to meet the food security needs of vulnerable countries.

     

    India has demonstrated its commitment to supporting food-insecure and vulnerable nations by allowing the export of essential food items. In recent weeks, the DGFT announced the approval of exports, including:

     

    Wheat Exports: India permitted the export of 3 lakh tonnes of wheat to Nepal and 14,184 tonnes to Bhutan, contributing to the food security of neighboring countries.

     

    Non-Basmati Rice Exports: India authorized non-basmati rice exports to Bhutan (79,000 tonnes), Mauritius (14,000 tonnes), and Singapore (50,000 tonnes) through the National Cooperative Exports Ltd (NCEL).

     

    The government has reiterated its commitment to providing the required quantity of rice or wheat to food-insecure and vulnerable countries upon request, aligning with India’s role as a responsible global player in addressing food security challenges.

     

    Additionally, India has allowed the export of broken rice to several nations, including Senegal (5 lakh tonnes), Gambia (5 lakh tonnes), Indonesia (2 lakh tonnes), Mali (1 lakh tonnes), and Bhutan (48,804 tonnes). These exports aim to manage domestic grain supplies effectively.

     

    To bolster domestic grain availability and tackle inflation, the government had previously imposed export bans on broken rice, wheat, and non-basmati white rice. These measures reflect India’s proactive approach to maintaining food security and addressing inflationary pressures, particularly in light of food inflation persisting above the Reserve Bank of India’s desired range of 2-6%.

     

    This balanced approach allows India to fulfill its commitment to international food security while ensuring a stable and sufficient supply of essential food items domestically.