Signs of increasing pressure on global market price of rice after opening of exports from India

11-Oct-2024 08:51 PM

Hyderabad. After the Central Government freed the export of non-Basmati white rice from the ban, the global market price has started coming under pressure. India is the largest exporter of rice in the world.

When the government banned the commercial export of white rice in July 2023, exporting countries like Thailand, Vietnam,

Pakistan and Myanmar took advantage of the situation and arbitrarily increased the export offer price of their rice. Since Indian rice is always available at a competitive price, when its export was opened again, other exporting countries started feeling threatened to their business and hence they have to reduce the price of rice.

Although the Government of India has fixed a minimum export price (MAP) of $ 490 per tonne for non-Basmati white rice, but given the high price prevailing in the global market, this MAP is unlikely to have any significant impact on the export of Indian rice.

But it is certain that due to strong demand from exporters before the arrival of new goods, the price of rice has increased by 10-15 percent in the domestic market, which may reduce the export margin.

It is also important to note that there is no export duty on non-Basmati white (raw) rice, while the export duty on Sela rice has been reduced from 20 percent to 10 percent.

This decision will play an important role in boosting the export business of rice. The export performance of Basmati rice is also expected to improve because the MAP of $ 950 per tonne applicable on it has been abolished.