India Lifts Ban on Non-Basmati White Rice Exports: UAE Receives 75,000 Tones

Introduction

In a significant development, India has decided to lift the ban on the export of non-basmati white rice, allowing for the export of 75,000 tonnes to the United Arab Emirates (UAE). This decision comes after a temporary prohibition aimed at stabilizing domestic rice prices and ensuring food security within the country. The exports will be facilitated through the National Cooperative Exports Limited, subject to government approval and requests from other nations seeking to bolster their own food security. This move reflects India’s commitment to supporting global food needs while maintaining domestic stability.

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Background on the Ban

The export of non-basmati white rice from India was temporarily banned starting on July 20, primarily to address two key concerns: controlling domestic rice prices and ensuring food security for its citizens. These measures were deemed necessary due to fluctuating rice prices and the imperative need to safeguard the availability of rice within India.

  • Lifting the Ban

In a recent announcement, the Directorate General of Foreign Trade (DGFT) revealed that India is now permitting the export of 75,000 tonnes of non-basmati white rice to the UAE. This decision represents a significant policy change, indicating the Indian government’s confidence in the stability of its domestic rice market.

  • The Role of National Cooperative Exports Limited

To facilitate these exports, the National Cooperative Exports Limited will play a pivotal role. This cooperative will oversee and manage the process of exporting rice to the UAE. This move signifies the Indian government’s commitment to ensuring that exports are conducted efficiently and responsibly.

  • Export Policy Amendments

As part of the policy amendment, the DGFT clarified that rice exports will be allowed based on the government’s permission to other countries. These permissions will be granted with the intent of assisting these nations in meeting their food security needs. The decision to export rice is contingent on formal requests from foreign governments, ensuring that the exports align with their food security objectives.

  • Expanding Export Opportunities

Notably, this is not the first instance where India has decided to export rice to address food security concerns in another nation. In the recent past, India allowed rice exports to Singapore to meet its food security requirements. Additionally, India has a history of exporting non-basmati rice to a wide array of countries, including UAE, Nepal, Bangladesh, China, Cote D’ Ivoire, Togo, Senegal, Guinea, Vietnam, Djibouti, Madagascar, Cameroon, Somalia, Malaysia, and Liberia. Among these, Benin stands out as one of the major importers of non-basmati rice from India.

  • Earlier Export Restrictions

It’s worth noting that India had imposed restrictions on rice exports in September 2022. During this period, the country banned the export of broken rice and imposed a 20% duty on non-basmati rice exports, with the exception of parboiled rice. These measures were enacted due to concerns about reduced rice production attributed to a decrease in the area cultivated for paddy crops. Fortunately, these restrictions were lifted in November of the same year.

Conclusion

India’s decision to permit the export of 75,000 tonnes of non-basmati white rice to the UAE marks a significant shift in its export policy. It underscores India’s commitment to balancing the needs of its domestic market while supporting global food security efforts. As the National Cooperative Exports Limited takes charge of facilitating these exports, it is evident that India aims to ensure responsible and efficient trade in non-basmati white rice. This move also highlights the importance of cooperation and collaboration among nations to address pressing food security challenges in today’s interconnected world.

FAQ’s

1. Why was the export of non-basmati white rice from India banned in the first place?

  • The export of non-basmati white rice from India was temporarily banned to address two primary concerns: controlling domestic rice prices and ensuring food security within the country. These measures were implemented to stabilize the fluctuating rice prices and ensure an adequate rice supply for Indian citizens.

2. What led to the decision to lift the ban on non-basmati white rice exports?

  • The ban on non-basmati white rice exports was lifted to accommodate the needs of other countries and support their food security requirements. The Indian government made this decision based on formal requests from foreign governments and the intent to assist these nations in meeting their food security needs.

3. How will the exports to the UAE be managed?

  • The exports to the UAE will be facilitated through the National Cooperative Exports Limited. This cooperative will oversee and manage the process of exporting rice, ensuring responsible and efficient trade.

4. Are there any other countries to which India is exporting non-basmati white rice for food security reasons?

  • Yes, India has a history of exporting non-basmati white rice to several countries, including but not limited to UAE, Nepal, Bangladesh, China, Cote D’ Ivoire, Togo, Senegal, Guinea, Vietnam, Djibouti, Madagascar, Cameroon, Somalia, Malaysia, and Liberia. Singapore is another recent example where India allowed rice exports to meet food security requirements.

5. What were the earlier export restrictions on rice imposed by India?

  • In September 2022, India imposed restrictions on rice exports, including a ban on the export of broken rice and a 20% duty on non-basmati rice exports, except for parboiled rice. These measures were enacted due to concerns about reduced rice production attributed to a decrease in the area cultivated for paddy crops. Fortunately, these restrictions were lifted in November of the same year.

6. What does this decision mean for global food security efforts?

  • India’s decision to permit the export of non-basmati white rice to the UAE reflects the importance of international cooperation in addressing food security challenges. It demonstrates India’s commitment to supporting global food needs while maintaining domestic stability, contributing to overall efforts to ensure food security worldwide.

7. How does this policy shift impact the Indian rice market?

  • The policy shift signifies the Indian government’s confidence in the stability of its domestic rice market. By allowing controlled exports, it ensures that domestic rice prices remain reasonable and that there is enough rice available for Indian consumers.

8. Is this a one-time export or part of a broader policy change?

  • While the announcement focuses on the export of 75,000 tonnes of non-basmati white rice to the UAE, it represents a broader policy shift in India’s approach to rice exports, indicating a willingness to support other nations’ food security needs when necessary.

9. How can other countries request Indian rice exports for food security purposes?

  • Other countries can request Indian rice exports for food security purposes by formalizing their requests through diplomatic channels. The Indian government will evaluate these requests and grant permission based on their merit and alignment with food security objectives.

10. What are the implications of this decision for Indian agriculture and trade?

  • This decision is expected to have positive implications for Indian agriculture and trade, as it allows controlled exports, supports the Indian rice industry, and contributes to global trade partnerships. It showcases India’s willingness to play a responsible role in international food security efforts.
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