Govt Sets Minimum Export Price Of $490 Per Tonne On Non-Basmati White Rice: DGFT

On Friday, the government announced a reduction in the export duty on parboiled rice from 20 per cent to 10 per cent

The government on Saturday lifted the blanket ban on overseas shipments of non-basmati white rice, implementing a minimum export price (MEP) of $490 per tonne instead. This ban had been in place since July 20, 2023, as a measure to bolster domestic supply. 

According to a notification from the Directorate General of Foreign Trade (DGFT), the export policy for non-basmati white rice—including semi-milled or wholly milled rice, whether polished or unpolished—has been changed from prohibited to free, with the stipulation of the MEP of $490 per tonne. This new policy takes effect immediately and will remain in place until further notice.

Meanwhile, on Friday, the government announced a reduction in the export duty on parboiled rice from 20 per cent to 10 per cent. This decision comes as inventories in the world's largest rice exporter have increased, with farmers preparing to harvest a new crop in the coming weeks. The lowered export duty is expected to decrease India's export prices, enhance shipment volumes, and compel competing countries such as Thailand, Vietnam, Pakistan, and Myanmar to lower their prices as well.

In 2023, India imposed a 20 per cent export duty on parboiled rice due to crop damage from below-normal rainfall. The government recently announced a reduction in the export duty on brown and husked rice to 10 per cent, effective immediately. 

Additionally, the export duty on white rice has been set to zero; however, the government has not specified whether private traders will be permitted to export or if the trade will be limited to government-to-government agreements.

Earlier this month, the government lifted the floor price for basmati rice exports to assist thousands of farmers who had expressed difficulties accessing lucrative international markets, including Europe, the Middle East, and the United States.

As of September 1, the rice stocks held by the Food Corporation of India amount to 32.3 million metric tons, a 38.6 per cent increase from the previous year.