On Wednesday, the Centre lifted the Minimum Export Price of $490 (Rs 41,193.25) per tonne, with ‘immediate effect’ on non-basmati rice. This regulation came just the day after removing the export duty on parboiled rice, paddy, and brown rice, reducing it from ten percent to nil.
Directorate General of Foreign Trade (DGFT) said, “The requirement of Minimum Export Price (MEP) for the export of Non-Basmati White Rice under HS code 10063090 has been lifted with immediate effect. This is issued with the approval of the competent authority.”
Boost in rice shipments
In July 2023, the Centre banned rice exports to tame the inflationary practices and deal with climate change resulting in weak monsoons. Karnataka’s request for releasing an extra 5kg of rice to fulfill the Congress government’s promise of 5kg extra subsidized rice in addition to what the center was providing was also turned down.
On September 28, the Centre removed the blanket ban from the overseas shipment of non-basmati rice but imposed a floor price of $490 per tonne. Last month, the export duty on non-basmati rice was lifted, and the duty on the other three types of rice was halved i.e. reduced from 20 percent to 10 percent.
On Tuesday, this ten percent was also reduced to nil, and just the day after on Wednesday the center relaxed the export bans a little further and removed the Minimum Export Price on non-basmati white rice.
India: World’s largest exporter of rice
Removing the export duty and encouraging the overseas shipments of non-basmati rice came into effect after the season’s bumper paddy crop. B V Krishna Rao, President of Rice Exporters Association said, This will help regulate the international market and compete with Pakistan and Thailand, resulting in competitive prices.
Indian tillers will be encouraged to enter the global market and reduce their dependency on the Food Corporation of India for Minimum Support Prices. Productive consumption of the rice stock in godowns, which is at least three times the required buffer stock, will also take place.
