Government Lifts Ban on Non-Basmati Rice Exports, Cuts Duty to Boost Agricultural Sector

New Delhi, Sep 28 (KNN) In a significant policy shift, the Indian government has lifted its ban on the export of non-basmati white rice, a move that has been met with widespread approval from traders and exporters. 

This decision, announced by the Ministry of Commerce and Industry on Friday, comes after months of restrictions aimed at stabilising domestic rice prices and ensuring sufficient supply amidst rising inflationary pressures.

The export ban, initially imposed in July 2023, was a precautionary measure taken in response to concerns over domestic availability. 

However, favourable supply conditions, coupled with the anticipation of a robust kharif crop harvest, prompted the government to relax these restrictions. This strategic pivot reflects a growing confidence in the agricultural sector's recovery and is poised to invigorate the economy.

Exporters are heralding the government’s decision as a "game-changer" for the agricultural landscape in India. With the lifting of the ban, they foresee an immediate boost in income opportunities, which will not only benefit them but also empower farmers. 

The prospect of higher returns for producers, especially with the new kharif crop on the horizon, is expected to foster a more resilient agricultural economy.

In a complementary move, the government has also reduced the export duty on parboiled rice from 20% to 10%. This reduction further incentivizes exports and alleviates some financial burdens on exporters. 

The combined impact of these measures is anticipated to enhance India’s competitiveness in the global rice market, strengthening its position as a leading rice exporter.

Industry experts predict that these changes will encourage more farmers to engage in rice cultivation, thereby boosting overall agricultural productivity. 

Moreover, the lifting of the ban and the reduction in export duties align with the government's broader objectives of enhancing farmers' incomes and promoting rural development.

The international rice market, often sensitive to policy shifts in major producing countries, is expected to respond positively to India’s renewed export commitment. 

As the world's second-largest rice producer, India's actions have the potential to influence global rice prices and supply chains significantly.

In summary, the Indian government’s recent policy changes represent a proactive approach to revitalizing the agricultural sector. 

By lifting the ban on non-basmati rice exports and cutting export duties, the government not only aims to stabilize the domestic market but also aspires to reinvigorate the rural economy, benefiting exporters and farmers alike.

(KNN Bureau)