Government removes export ban on organic non-basmati rice

Tags: Economy/Finance

The Directorate General of Foreign Trade (DGFT) under the Union Ministry of Commerce and Industries has issued a government notification allowing the export of organic non-basmati rice, including broken rice, on 29 November 2022.  The move is expected to boost the export of rice from India.

Organic rice means chemical fertilizers and pesticides are not used by the farmer while cultivating the rice. 

The government in September this year had banned the export of broken rice with an aim to increase domestic availability. It also imposed a 20% export duty on the export of non-basmati rice.

The price of rice has increased marginally in the domestic market and the government is confident that there is no possibility of a sharp increase of rice in the domestic market. Hence it has allowed the export of organic non-basmati rice, including broken rice.

Export of Rice from India

According to the Union Ministry of Commerce the rice export from India during April-September 2022 was USD 5.5 billion. 

The country exported 21.2 million tonnes of rice in 2021-22, of which 3.94 million tonnes were basmati rice. It exported non-basmati rice worth USD 6.11 billion in the same period and the total export of rice was USD 9.7 billion.

India is the largest exporter of rice in the world with a 40% share in the world rice market. Thailand, Vietnam and Pakistan are the other major exporters of rice in the world.