India banned rice exports in July 2023 to control domestic prices. In 2022, India exported 22.2 million tonnes of rice, of which 17.86 million tons were non-basmati rice. The major rice-producing states in India are Punjab, Chhattisgarh, Odisha, Andhra Pradesh, West Bengal and Uttar Pradesh. Malaysia, Singapore, Djibouti, Qatar, and Iraq, are among the countries that import a significant amount of rice from India.
India, the world's largest exporter of rice exporter, may review the decision to ban the export of non-basmati rice, a year after it was imposed to control domestic prices.
A Group of Ministers (GoM) led by Home Minister Amit Shah is likely to examine the proposal. Sources told CNBC-TV18 that a final decision is likely this week.
Some of the recommendations on the table include the following:
- Allow export of non-basmati rice with a minimum export price,
- Remove duty on the export of parboiled rice
The decision would be based on the assessment of the rice crop and whether there's enough buffer stock to meet demand for two years.
On July 5, many exporters had appealed to the Ministry of Commerce to lift the ban citing loss of market share to players from Thailand and Pakistan.
India banned the export of rice in July 2023 to control inflation. However, some exports, in limited quantities, were allowed later, subject to conditions.
For example, any sale from the Indian government to other governments was allowed.
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