India Considers Easing Rice Export Restrictions

ENA Sectors 2024-07-09 13:59:29 New Delhi, Jul 9 (KNN) In a potential shift of policy, India, the world's leading rice exporter, is contemplating the relaxation of restrictions on certain rice varieties, according to sources close to the matter. This move is being considered to prevent a domestic surplus as the new harvest approaches in October, reported ET. Under consideration are plans to permit white rice exports with a fixed duty, and to replace the current 20 per cent tax on parboiled rice exports with a fixed levy. The latter change aims to discourage under-invoicing of shipments. These modifications, if implemented, could have a cooling effect on benchmark Asian rice prices, which reached a 15-year high in January following India's export restrictions initiated in 2023. Such policy adjustments could bring relief to countries in West Africa and the Middle East, which heavily depend on India for their rice supplies. Official spokespersons for the food and commerce ministries have not yet commented on these potential changes. Recent data reveals a significant decline in India's rice exports. In the first two months of the fiscal year beginning April 1, total rice exports dropped 21 per cent year-on-year to 2.9 million tons. Non-basmati rice exports saw an even steeper decline of 32 per cent, totalling 1.93 million tons during the same period. Meanwhile, India's agricultural sector is in the midst of the main rice sowing season, coinciding with the onset of the monsoon. Planting is expected to peak in July, with harvesting scheduled to commence in late September. As of July 8, the rice acreage stood at 6 million hectares, marking a 19 per cent increase from the previous year. This growth is attributed to a recovery in monsoon rains following a deficit in the previous month. These developments in India's rice export policies and domestic production could have significant implications for global rice markets and food security in rice-importing nations. (KNN Bureau) 38525 https://knnindia.co.in/news/newsdetails/sectors/india-considers-easing-rice-export-restrictions 2024-07-09 13:59:29 knnindia.co.in India Considers Easing Rice Export Restrictions