Removal of ban on export of non-Basmati rice may be considered

17-Jul-2024 05:54 PM

New Delhi. There is a huge surplus stock of rice in the central pool and new procurement of Kharif paddy rice is going to start after two and a half months.

There is a possibility of increase in paddy production area due to good monsoon rains during the current year.

In view of this, the government may consider withdrawing the ban on export of non-Basmati white rice.

It is known that its commercial export has been banned since July 2023, while exporters are strongly demanding its removal.

Experts say that a panel of senior ministers may consider the issue, but some other analysts feel that the final decision on withdrawing the ban on rice exports can be postponed till a clear picture of the production area of ​​Kharif paddy emerges. 

There was a great export of Basmati rice from India during the financial year 2023-24, but there was a huge decline in the shipment of non-Basmati rice.

Export performance is also likely to remain weak in the current financial year as commercial export of 100% broken rice along with white whole rice has been closed for a long time. 20% customs duty is applicable on export of non-basmati sella rice. 

The government is considering various options to reduce the huge stock of rice present in the central pool. Under this, it has been announced to sell it again through the Open Market Sale Scheme (OMSS) with a reserve price of Rs 2800 per quintal.

Apart from this, allocating some stock of rice for ethanol production can be considered. State governments have been allowed to lift rice from the depots of Food Corporation of India at a fixed price.

The government is anxious to reduce the stock of rice so that there is enough free space in the warehouses for safe storage of new rice to be purchased in the next season.