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How India’s Rice Export Ban Could Trigger A Global Crisis

By Pravarsh Sharma

Jul 05, 2023 | 10 min read

Category - Rice

The export of non-basmati white rice has been prohibited by India. Due to crop damage and production concerns brought on by the delayed monsoon rains, the government issued a notice on the 20th of July, ordering a halt to the export of non-basmati white rice. 

Rice Exports From India 

The largest exporter of rice worldwide is India, which shipped a record 22.2 million tons of rice in 2022, or more than 40% of the total 55.4 million tons of rice exported worldwide. 

India sells rice to over 140 nations, with mainly Iran, Iraq, and Saudi Arabia purchasing basmati rice while Benin, Bangladesh, and other nations buy non-basmati rice. 

In 2022, India mainly exported non-basmati rice. 17.86 million tons of non-basmati rice, including 10.3 million tons of non-basmati white rice, were exported out of a total of 22.2 million tons of rice. Additionally, in September 2022, India added a 20% duty to some grades of rice. 

There are no export limits for basmati or parboiled rice in India. In 2022, the country exported 4.4 million tons of basmati rice and 7.4 million tons of parboiled rice. 

India’s Rice Production 

Paddy rice is grown twice a year in India. In 2022/23, the summer-sown crop, which begins in June and accounts for more than 80% of total output, was 135.5 million tons. Winter-sown crops are primarily grown in the central and southern states. 

West Bengal and Uttar Pradesh are two of the most important rice-producing states. These two states, along with Andhra Pradesh, Punjab, Odisha, and Chattisgarh, are India's primary rice producers.

India raised the price it paid farmers to purchase new-season paddy. In order to promote the growth of rice farming, India raised the minimum support price for common paddy by 7% to 2,183 rupees per 100 kg. 

In 2023, India experienced unpredictable monsoon rainfall distribution that arrived late and left a significant rainfall deficit up until mid-June. Since then, there was no shortfall, but crops were harmed by heavy rains. 

India's rice exports and production could decline in 2023. Due to unfavorable weather, industry officials anticipate a slight decrease in paddy area and production in 2023. India's rice exports and the world rice supply may be impacted by this. 

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