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

Context: Recently, the Indian government approved the export of non-basmati white rice to five African countries through the National Cooperative Export Ltd (NCEL).

• According to a Directorate General of Foreign Trade (DGFT) notification, broken rice exports have been approved for Kenya, Egypt, Madagascar, Comoros and Equatorial Guinea.

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 20% export duty on par-boiled non-basmati rice.
• In October 2023, the government had given nod for exports of non-basmati white rice to Philippines, Cameroon, Malaysia, Ivory Coast, republic of Guinea, Nepal and Seychelles.
• Agricultural & Processed Food Products Export Development Authority (APEDA) is the agency responsible for regulation of export of Basmati rice.

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.
• Basmati Rice production in India: J & K, Himachal Pradesh, Punjab, Haryana, Delhi, Uttarakhand and western Uttar Pradesh.
• Categories of Rice Export: Basmati rice, Parboiled non-basmati rice, Raw white rice and Broken non-basmati rice.