India’s Basmati And Non-Basmati Rice Exports Witness A 7.37% Rise In April-October 2022: Industry Data

As evident from the data, India commands a mammoth 40% share in the global rice trade, and Thailand, Vietnam, Pakistan, and Myanmar are some of its main competitors in the global rice market. 

Owing to favorable climatic conditions, India enjoys a good harvest every year. However, this year, India’s leading rice-producing states i.e. West Bengal, Bihar, and Uttar Pradesh witnessed erratic climate hampering domestic production. 

Changes In The Rice Export Policy 

The Government of India on the 9th of September 2022 changed the status of the export of broken rice and moved the commodity from the ‘free’ to the ‘prohibited’ category and also levied a 20% duty on non-basmati rice, with an exception to Basmati rice and Parboiled rice. 

The duty was levied to ensure adequate supplies for domestic consumption. However, the GOI’s decision made India’s rice shipments uncompetitive in the global market, dropping exports by more than 25%YoY and paving the way for competing countries like Thailand and Vietnam. 

India exports rice to more than 150 countries, and any reduction in its shipments would increase the already rising pressure on food prices because of unfavorable climatic conditions and Russia’s invasion of Ukraine. 

Post Ban Situation 

As per industry data released recently, India’s aromatic basmati rice and Non-Basmati Rice rose by 7.37% to 126.97 lakh tonnes during the April-October period of 2022 while they stood at 118.25 lakh tonnes during the same period in the previous fiscal, despite restrictions.

Vijay Sethia, the former president of All India Exporters Association commented, “Despite curbs on exports of some varieties of rice, the overall exports remained strong so far.” 

As per the Agriculture Ministry in India, the estimated rice output had declined to 104.99 million tonnes in the Kharif season of the 2022-23 crop year (July-June) from 111.76 million tonnes in the previous Kharif season. 

India’s Rice Exports In 2022 

The shipments of basmati rice from India were mostly to the traditional markets of the US, Europe, and Saudi Arabia while the exports of non-basmati rice were mainly to African countries. 

Mr.Vijay Sethia also mentioned that from the rice exported in the April-October period of 2022-23 fiscal, the Basmati Rice Exports rose to 24.97 lakh tonnes from 21.59 lakh tonnes in the same period in the previous fiscal while the exports of non-basmati rice increased to 102 lakh tonnes from 96.66 lakh tonnes in the same period in the previous fiscal. 

As per Mr.Sethia, the exports of non-basmati rice remained robust as the exports of it were not affected by the imposition of customs duty and the Government only imposed the curbs to check domestic prices which had flared due to a likely fall in production. 

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