Ban on non-basmati rice exports may benefit India’s competitors

Nagpur, July 22 (KNN) The rates of white rice has come down by 10% from an average of Rs 3,000 a quintal a day after government banned its export, reported TOI.

Traders have warned that the DGFT’s move that puts basmati white rice in the prohibited list is likely to benefit other rice exporting countries, including Pakistan.

Ban in India may boost the rates in other countries, which compete with India for exporting white rice to African countries, they say.

Purpose of the ban is to ease the prices for domestic consumers. However, traders argue that rice has only got nominally costlier in the recent times.

In September, a similar ban was imposed on broken rice. Now what can be exported from India remains only basmati and parboiled rice. 

However, in another notification issued again on Friday, the DGFT cited Delhi high court order and has partially eased the exports of broken rice. Now exporters can apply for licences to ship the commodity to Senegal, Gambia and Indonesia till July 27. 

This leaves a week’s window for the exporters to apply for licence.  (KNN Bureau)