Huge stock, govt lifts ban on non-basmati rice export

Withdrawing a blanket ban on the overseas shipments of non-basmati white rice, the government on Saturday imposed a floor price of $490 per tonne and exempted the commodity from export duty.

Exports of non-basmati white rice had been banned since July 20, 2023, to boost domestic supply.

“The export policy for non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or gazed)... is amended from prohibited to free, subject to MEP (minimum export price) of $490 per tonne with immediate effect and until further orders,” the Directorate General of Foreign Trade (DGFT) said in a notification.

The measures came at a time when the country has ample stock of rice in government godowns and retail prices are also under control. The government has exempted non-basmati white rice from export duty, while reducing the levy on parboiled rice to 10 per cent.

The duty cut came within a fortnight of the government’s decision to remove the minimum export price on basmati rice.

In a notification issued on Friday, the revenue department under the Ministry of Finance said it had also reduced export duty on husked (brown rice) and rice in the form of husk (paddy or rough) to 10 per cent.

The export duty on these varieties of rice as well as non-basmati white rice was 20 per cent so far. These duty changes are effective from September 27, 2024, the notification said.

Earlier this month, the government had scrapped the minimum export price for basmati rice to boost outbound shipments and enhance farmers’ income. The country has exported non-basmati white rice worth $189 million during April-July this fiscal. It was $852.52 million in 2023-24.

Though there was a ban on the exports, the government was allowing the shipments to friendly nations like Maldives, Mauritius, the UAE and African countries.

The export permission was granted by the government to meet these nations’ food security needs and based on the request of their governments. This variety of the rice is widely consumed in India and it also has demand in global markets.