EXPORT OF NON-BASMATI (Syllabus: GS Paper 3 - Agriculture)

News-CRUX-10     28th August 2023        
output themes

Context: By banning the export of Basmati rice valued at less than $1,200 per metric tonne (MT), the Union government ensured additional safeguards for its export ban on non-Basmati white rice (by misclassifying it as Basmati rice).

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.
  • Agricultural & Processed Food Products Export Development Authority (APEDA) is the agency responsible for regulation of 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.