India allows non-basmati white rice exports in boost for global supplies

Published: 29 September 2024

Agencies
New Delhi

India gave the go-ahead on Saturday for exports of non-basmati white rice to resume as inventories in the world’s biggest exporter of the grain surge and farmers prepare to harvest a new crop in the coming weeks.

Bigger rice shipments from India would beef up overall global supplies and soften international prices by forcing other major exporters of the staple such as Pakistan, Thailand and Vietnam to reduce their rates, traders said.

New Delhi set a floor price for non-basmati white rice exports of $490 per metric ton, a government order said. That came a day after the government cut the export tax on white rice to zero.

New Delhi’s decision to allow traders to sell non-basmati white rice on the world market follows a series of moves to ease export restrictions on premium, aromatic basmati and parboiled varieties. On Friday, India also reduced the export duty on parboiled rice to 10% from 20% previously.

Earlier this month, the government removed a floor price for basmati rice exports to help thousands of farmers who complained about a lack of access to lucrative overseas markets such as Europe, the Middle East and the United States.

As the El Nino weather pattern raised the spectre of poor monsoon rains, India imposed various curbs on rice exports last year and extended them into 2024 to keep local prices in check ahead of the April-June national election.

Since the 2023 ban on exports, local supplies have picked up, bumping up stocks at government warehouses.

Rice stocks at the state-run Food Corporation of India on Sept. 1 stood at 32.3 million metric tons, 38.6% higher than last year, giving the government ample room to ease rice export curbs.