India exported 22.3 million metric tonnes (MMT) of rice worth more than $11.1 billion in 2022–2023. In many ways, India's role in the world's rice trade is comparable to that of Indonesia and Malaysia in the palm oil trade. Although there are more suppliers of rice than India, including Thailand, Vietnam, Pakistan, the US, and Myanmar, they shall be unable to fill the gap. Therefore, a rise in global prices is unavoidable.
Consequences Of Rice Export Policy Change
The action has effects on both the domestic and international levels. According to the US Department of Agriculture, the world's total rice exports were 55.6 MMT in 2023-23, with India accounting for more than 40% of that total.
The decision by the Narendra Modi administration to prohibit all shipments of non-basmati white rice on 20th July will lead to the removal of 9.9 MMT of supply from the global markets. From now on, only two types of rice will be permitted to leave the country: basmati and parboiled non-basmati, which together accounted for 12.4MMT and $7.8 billion in the most recent fiscal year.
Reasons For Policy Change Decision
The most recent decision comes after a string of measures, beginning with a ban on wheat exports in May of last year and a ban on broken rice in September, which was followed by a 20% duty placed on other non-parboiled non-basmati shipments. Sugar exports were also halted after May of this year. These retrograde actions have all been taken in response to domestic supply issues. Given the below-average monsoon rainfall in the major growing states, the Modi government is undoubtedly concerned about the current rice crop.
While some states, including Telangana, Andhra Pradesh, Odisha, and Chhattisgarh, have experienced good rains over the past week, it is still unknown how planting delays will affect yields. El Niño is also a source of uncertainty because it has the potential to affect how the monsoon performs in the second half, which will then affect how well the kharif rice crop and the upcoming rabi wheat harvest do.
If you are a rice importer wishing to buy rice in bulk or a rice exporter willing to export rice in bulk, then Tradologie.com is the right platform for you. Tradologie is a Software as a Service platform that facilitates bulk agro-trade across the globe. Through tradologie’s interface, buyers can avail the best qualities of agro-commodities at negotiable rates. The transaction oriented platform has 600,000+ verified buyers and about 70,000+ registered sellers of agro-commodities from over 150 countries.
To register as a buyer, click here. To register as a seller, click here.
To stay updated with the latest happenings in the agro-trade industry, follow Tradologie.com across all social media channels.
