Understanding curbs on rice exports

Source– The post is based on the article “Understanding curbs on rice exports” published in “The Hindu” on 31st August 2023.

Syllabus: GS 3 – Agriculture

News– The Indian government has prohibited the export of white rice, levied a 20% export duty on par-boiled rice till October 15, and permitted the export of Basmati rice for contracts with value of $1,200 a tonne or above.

What is the rice production estimate in the country?

As per the latest Advanced Estimate from the Department of Agriculture and Farmers Welfare, rice production during the Rabi season of 2022-2023 witnessed a decrease of 13.8%.

It was 158.95 lakh tonnes compared to the 184.71 lakh tonnes recorded during the Rabi season of 2021-2022.

Regarding Kharif sowing data, it indicates that rice has been cultivated on 384.05 lakh hectares up to August 25 this year, in contrast to the 367.83 lakh hectares during the same period last year.

However, in certain states like Tamil Nadu, some farmers anticipate delayed planting due to insufficient rainfall from the southwest monsoon.

What are statistics related to rice exports?

India holds the position of being the world’s largest exporter of rice. It has a significant 45% share in the global rice market.

Shipments of non-Basmati rice recorded a growth of 7.5% in May despite the imposition of a 20% export duty on white rice and the prohibition of broken rice exports by the government in September last year.

The export of non-Basmati rice has demonstrated a consistent upward trend over the past three years.

According to government-provided statistics, up until August 17 of this year, total rice exports have surged by 15%. It reached 7.3 million tonnes in contrast to the 6.3 million tonnes during the same period last year.

What will be the impact of recent government decisions on rice farmers and consumers?

The government has raised the Minimum Support Price for rice. The rice millers are currently procuring paddy at rates exceeding the MSP. This means that farmers will not experience a decline in prices.

Export restrictions are in place to prevent a sudden surge in rice prices within the market.

There is a marginal present increase in rice prices for domestic consumers. But, the long-term outlook ensures both availability and stable prices. The situation regarding arrivals and government policy will become clearer around mid-September.

For more reading- https://forumias.com/blog/the-case-for-uniform-minimum-export-price-for-rice-without-basmati-distinction/