Government imposes restrictions on export of Basmati rice

Source: The post is based on the article “Government imposes restrictions on export of Basmati rice”  published in The Hindu on 28th August 2023

What is the News?

The Indian government has halted the export of Basmati rice valued at less than $1,200 per tonne.

Why has the government imposed restrictions on export of Basmati rice?

This has been done to prevent the possible “illegal” shipment of plain white rice by wrongly classifying it as Basmati rice.

Note: In July 2023, the export of non-Basmati white rice was prohibited.

Why has India banned the export of non-basmati white rice?

India’s reasons were domestic — rising food prices, high inflation and fear of rice shortage due to El Nino disruptions as the country heads into a festive season and elections.

Why is India crucial to the global rice trade?

India accounts for more than 40% of global rice exports, which amounted to 55.4 million metric tons in 2022. 

India’s rice shipments in 2022 were more than the combined shipments of Thailand, Vietnam, Pakistan and the US, the next four big exporters of the grain.

Over 140 countries are net importers of India non-basmati rice. Benin, Bangladesh, Angola, Cameroon, Djibouti, Guinea, Ivory Coast, Kenya and Nepal, having rice a staple food, are key buyers of non-basmati Indian rice