Non – Basmati Rice
Kartavya Desk Staff
Syllabus: India Exports
- •Source: TOI*
Context: The Government of India lifted the export ban on Non-Basmati White Rice on September 28, 2024.
Recent decision points:
• Minimum export price (MEP): A minimum export price (MEP) of $490 per tonne has been imposed on Non-Basmati White Rice.
• Reduction in export duty: The government also removed the 20% export duty on Non-Basmati White Rice and reduced export duty from 20% to 10% on husked rice, parboiled rice, and paddy.
India’s status in global rice exports:
• Global leader: India is the second-largest producer and the biggest exporter of rice globally, accounting for 33% of the world’s total rice exports in 2023 (17 million tonnes).
• Competitors: India’s major competitors in the rice export market are Thailand and Vietnam, which together export almost as much rice as India. Other competitors include Pakistan, Cambodia, and the United States.
• Export breakup: India’s rice exports are divided into Basmati and Non-Basmati categories. In 2023-24, Basmati rice accounted for one-third of total rice exports (52.42 lakh tonnes), while Non-Basmati rice saw major exports of varieties like parboiled rice and Non-Basmati White Rice.
Impacts of lifting the ban:
• Domestic level:
• Increase in retail prices: The lifting of the ban could lead to further price hikes in domestic retail prices, which have already been elevated due to inflationary trends.
• Benefit to farmers: Farmers who grow premium Non-Basmati rice varieties, like Sona Masoori, are likely to benefit from improved export opportunities.
• Support for state welfare schemes: State governments have been allowed to purchase rice for welfare schemes, providing a safety net for lower-income communities.
International level:
• Boost to exporters: The lifting of the ban will revive sentiment among traders, particularly in countries like Kenya, Vietnam, and Malaysia, which are major importers of India’s Non-Basmati White Rice.
• Global market stabilization: India’s re-entry into the global rice market will help stabilize prices internationally, especially after the earlier ban disrupted global supplies.
• Strengthening international relations: India’s rice exports play a role in food security for many countries, especially in regions like Southeast Asia and Africa. The lifting of the ban could reinforce trade ties with these countries.
Way ahead:
• Balanced export-import policies: The government should monitor both domestic supply and global demand to ensure a balance that prevents further domestic inflation while maintaining export growth.
• Focus on production: Increasing investment in rice farming infrastructure, including irrigation and yield-improving technologies, will be critical in ensuring sustained high production levels.
• Promote diversification: Encouraging diversification of rice varieties and exports can ensure stable income for farmers while promoting India’s competitiveness in the global market.
Conclusion:
The decision to lift the ban on Non-Basmati White Rice exports and impose a minimum export price is aimed at balancing domestic availability with global demand. This may benefit both farmers and exporters, while also addressing India’s global role as a key rice supplier.
Insta Links:
• Rice export ban
• Economics of curbs on Rice
Among the following, which one is the largest exporter of rice in the world in the last five years? (2019)
Answer: b)
According to India’s National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels? (2020)
• Cassava Damaged wheat grains Groundnut seeds Horse gram Rotten potatoes Sugar beet
• Damaged wheat grains
• Groundnut seeds
• Horse gram
• Rotten potatoes
• Sugar beet
Select the correct answer using the code given below:
• 1, 2, 5 and 6 only
• 1, 3, 4 and 6 only
• 2, 3, 4 and 5 only
• 1, 2, 3, 4, 5 and 6
Answer: a)