Good news for paddy farmers as Centre relaxes rice export restrictions-Read

With this move, India has loosened restrictions on some rice exports, which may ease global prices and signal a shift in domestic agricultural policies.

Hyderabad: The paddy farmers in Telangana have at least one reason to cheer as the Centre has relaxed restrictions on rice exports on Saturday. The government has removed the blanket ban on overseas shipments of non-basmati white rice and imposed a minimum export price (MEP) of $490 per tonne. Additionally, authorities have cut the tax on overseas sales of parboiled rice to 10 percent from 20 percent with immediate effect. Since the ban on the export of non-basmati white rice came into effect on July 20, 2023, paddy farmers have faced significant challenges. Private players, especially the potential rice exporters, stayed away from purchasing, leaving farmers reliant mainly on government agencies for procurement at the minimum support price. Despite this, many farmers struggled to secure a fair deal.

The export ban also led to piling up of stocks in the State with the State Civil Supplies Corporation holding a major chunk of it. The Corporation is currently maintaining stocks of over 70 lakh tonnes of paddy and more than six lakh tonnes of rice. It is expected to face the space constraint for the Kharif procurement commencing early next month. The relaxation given for rice exports could turn out to be an added advantage for the corporation. The relaxation is expected to provide much-needed leverage, ensuring remunerative prices for farmers. With the Kharif harvest in the state projected to be over 150 lakh tonnes, a significant shift in paddy cultivation is anticipated.The Directorate General of Foreign Trade (DGFT) announced in a notification, “The export policy for non-basmati white rice, semi-milled or wholly milled rice, whether or not polished or glazed, is amended from prohibited to free, subject to MEP of $490 per tonne with immediate effect and until further orders.” Indian rice remains the cheapest in the international market compared to other rice-exporting countries.

With this move, India has loosened restrictions on some rice exports, which may ease global prices and signal a shift in domestic agricultural policies. The MEP has effectively lifted the ban on non-basmati white rice shipments, bringing relief to farmers and potentially stabilizing the global rice market.