INDIA – India, the world’s largest rice exporter, is considering relaxing restrictions on overseas sales of non-basmati rice varieties, a move that could potentially boost global supply and ease food inflation.
This comes just days after the government scrapped the minimum export price for premium basmati rice, signaling a shift in its trade policies.
The country has imposed curbs on rice exports for more than a year in an attempt to contain domestic prices and stabilize food inflation.
These measures were partly driven by concerns about food security ahead of national elections, as India sought to maintain sufficient stocks of essential staples like rice. However, as harvest season approaches, there are indications that the government might soften its stance.
“We are considering relaxing current restrictions on several varieties of non-basmati rice. “These decisions are dynamic and will depend on our domestic requirements and available stockpiles,” said Food Secretary Sanjeev Chopra in a statement.
India’s decision to review its rice export policy comes at a time when global rice prices are at a 15-year high, exacerbated by supply chain disruptions and adverse weather conditions in key growing regions. In January, the price of rice in Asian markets reached record levels, significantly impacting countries in West Africa and the Middle East, which rely heavily on Indian rice imports.
India’s export restrictions, which began in 2022, led to a 22% drop in rice shipments in the first quarter of the 2024 fiscal year, compared to the same period the previous year.
This decline contributed to higher import bills in nations such as Senegal, Nigeria, and Indonesia. However, domestic rice stockpiles have since reached record levels, prompting concerns of oversupply within India itself.
As Indian farmers prepare to harvest the main rice crop in late September following a favorable monsoon season, the government faces the challenge of balancing domestic food security with global market demands.
Analysts believe that any further relaxation of export restrictions on non-basmati varieties could similarly ease global supply pressures. “This would be welcome news for countries in Africa and Asia, where rice is a dietary staple and import costs have risen sharply,” said an expert on global food trade.
Moreover, the government plans to increase wheat supplies under the “Pradhan Mantri Garib Kalyan Anna Yojana” scheme by an additional 3.5 million tons for the fiscal year through March 2025.
This program, which aims to provide free food grains to underprivileged families, underscores the government’s commitment to ensuring domestic food security even as it considers loosening export restrictions.
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