On 20 July, the Union government banned the export of non-basmati white rice, as per a directorate general of foreign trade (DGFT) notice.
“Export policy of non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or glazed)…is amended from free to prohibited,” the DGFT announced in a notification.
However, it stated that there are four different conditions under which consignments of this rice are permitted.
Exports will be permitted in cases where a shipping bill has been filed, a vessel has arrived and is anchored at an Indian port, and a rotation number has been assigned to it prior to the notification.
They will also be permitted in cases where non-basmati rice shipment has already been delivered to clients and registered in their system prior to this notification.
“Export will also be allowed on the basis of permission granted by the government to other countries to meet their food security needs and based on the request of their governments,” it added.
In the last several months, India has seen a steady increase in the cost of its food supply. Price stability has been observed for wheat, rice, milk, vegetables, and pulses.
Due to the uneven and insufficient rainfall that has affected numerous parts of the nation, rice and pulses have been put at greater risk. As of July 14, the overall kharif seeding rate had decreased by 2%.
The total area planted with rice and pulses is 6.1% and 13.3%, respectively.
Low rainfall in major producer states like West Bengal, which is a significant producer of rice, and Maharashtra and Karnataka, which together produce more than 50% of the nation’s pulses, have been blamed for the delay in sowing.
“Looking at the trend, the fall in sown area is still a concern. While rains have picked up, at least 13 sub-divisions continue to be deficient. The country will only be able to match the sown area for the last year if these sub-divisions too get normal rainfall,” Jahnavi Prabhakar, Economist at Bank of Baroda said this in conversation with Moneycontrol on July 18.
