NON-BASMATI RICE (Syllabus: GS Paper 3 – Economy)

Context: The Government of India gave a green signal to the export of 75,000 tons of non-basmati white rice to the UAE.

• The Government of India has the commitment that in case of food insecure, vulnerable countries and neighboring countries request, it will provide with the required quantity of rice or wheat.
• The government permitted exports of broken rice to Senegal , Gambia, Indonesia, Mali, and Bhutan.
• The development comes as India banned the export of non-basmati white rice in order to boost domestic supply amid sticky inflation and the expectation of an erratic monsoon.

Key Points

• The export of non-Basmati white rice was prohibited on July 20, 2023, citing increasing domestic prices of rice.
• In September 2022, the Centre had banned exports of broken rice. 
• In August 2023, the Centre imposed a 20% export duty on par-boiled non-basmati rice.
• The Agricultural & Processed Food Products Export Development Authority (APEDA) is the agency responsible for the regulation of the export of Basmati rice.

Impact of the Ban

• IMF predicts a potential rise of 10-15% this year in international rice prices.
• Countries in Asia and Sub-Saharan Africa, which heavily rely on India as a major supplier of rice, may face vulnerability due to potential disruptions in the rice market.

India’s Status in Rice Exports

• India is the second-largest producer of rice in the world, after China. 
• India has become the largest rice exporter globally, accounting for nearly 40% of global rice exports in 2022/23. 
• Non-basmati white rice constitutes approximately 25% of the total rice exported from the country.