To combat rising food grain prices, the Union government has banned the export of white rice (other than basmati) with immediate effect. Even though exporters are concerned about the ban, observers believe that Andhra Pradesh farmers will not be significantly impacted by the Centre's decision. 

Exporters believe that the ban may last for a year because the government will be attempting to keep the cost of essential commodities in check prior to the 2024 general elections and the notification on Thursday did not specify a time limit for the ban's implementation. 

Rice Export Prohibition Impacts On Andhra Pradesh 

According to data, India exports nearly 18 million tonnes of rice to various countries around the world. 7 million tonnes of this is white rice, 8 million tonnes is parboiled rice, and 3 million tonnes is broken rice. According to Government sources and exporters, Andhra Pradesh exports 10-15% of the nation's total rice exports, including a 20-30% share of the nation's parboiled rice exports and 1 million tonnes of broken rice. 

According to B.V. Krishna Rao, the president of the Rice Exporters' Association of India, the farmers in A.P. may not be affected by the rice export ban. For one thing, exports of white rice from Andhra Pradesh "do not happen much. There is also no prohibition on the export of parboiled rice. He explained further, “The impact of the ban will not be much on the States where the Minimum Support Price (MSP) announced by the Central government is strictly implemented.” 

Government Procurement And Pricing 

M.V.S. Nagi Reddy, vice-chairman of the AP Agricultural Mission, believes that because the season has already ended, there should be no problems. The majority of the state's paddy production is being purchased by the state government for distribution through the Public Distribution System (PDS). Furthermore, a lot of the produce, particularly the superfine varieties

like BPT 5204 (Samba Mahsuri) in Andhra Pradesh and RNR 15048 in Telangana, is consumed locally, he continued. However, Mr. Rao predicts that prices may slightly decline on the domestic market. Fine varieties such as HMT or BPT may see a price drop of up to ₹5 per kg from the current price of around ₹50 per kg, while parboiled rice may see a price drop of up to ₹2 from ₹32 per kg. According to a senior official, the price of long grain rice is also expected to fall by about 5%. 

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