India’s rice exports crossed the billion-dollar mark in October, following several measures taken by the government to facilitate rice shipments. According to data released on Thursday by the Ministry of Commerce and Industry, rice exports in October 2024 amounted to $1,050.93 million, up 85.79 percent from $565.65 million in the same month of the year. past.
The ban on exporting white rice other than Basmati is lifted
Rice exports in September this year amounted to 694.35 million dollars. What is the reason for the increase in rice exports? This sharp rise in rice exports comes after the government took several measures in the last two months to facilitate rice exports. On September 28, the Center lifted the ban on export of white rice other than Basmati. However, it had imposed a minimum export price (MEP) of $490 per ton, which the government finally removed on October 23.
20 percent export duty on white rice eliminated
On September 27, the government removed the 20 percent export duty on non-Basmati white rice and halved the export duty on three other categories of rice. Duties on “husked (husked or shelled) rice”, “brown rice” and “parboiled rice” were reduced from 20 percent to 10 percent. However, it further reduced the tariff to zero on October 22.
With an increase in October, total rice exports during the first seven months (April-October) of the current financial year 2024-25 increased by 5.27 percent to 6,171.35 million dollars, compared to 5,862.23 million dollars in the same period of the last fiscal year. India’s total rice exports ($5,120.43 million) till the end of September this year were 3.33 per cent lower compared to $5,296.58 million during the first half of the last fiscal year.
What do the figures say about India’s rice exports?
India is the second largest producer and exporter of rice. India, along with China, produces more than half of the world’s rice production. However, China is also the largest consumer of rice, so there is little left to export.
India’s two main competitors
According to the United States Department of Agriculture (USDA), India’s share in the world’s total rice exports (53 million tonnes) during calendar year 2023 was 33 per cent (17 million tonnes). In 2022, before the ban on shipments of non-Basmati white rice, India accounted for around 40 percent of the world’s total rice exports (56 million tonnes). Two East Asian countries – Thailand and Vietnam – are India’s two main competitors in the global rice market.
Slight drop in rice production
India had banned rice exports amid a slight decline in rice production and the threat of a patchy monsoon last year. With its granaries full and rice production during the current Kharif season (2024-25) estimated to reach a record 119.93 million tonnes, an increase of 6.67 million tonnes (5.89 percent) in compared to last year’s production of 113.26 million tons. – The government has now facilitated the shipment of rice.
India’s rice exports are broadly classified into basmati rice and non-basmati rice. The non-basmati rice category includes six subcategories: paddy rice and seed quality; Other rice in the husk; Husked rice (brown); boiled rice; non-basmati white rice; And broken rice. Basmati accounts for about a third of India’s total rice exports. Exports of basmati and non-basmati rice in the financial year 2023-24 amounted to 52.42 lakh tonnes and 111.16 lakh tonnes respectively.
