The Centre on Saturday lifted its ban on export of non-basmati white rice, reversing a trade policy that curbed shipments of key agricultural produce to curb a spurt in local prices.

The government has allowed shipments of all varieties of white rice, prohibited in July 2023, but imposed a minimum export price or MEP of $490 a tonne with immediate effect, a notification by the directorate-general of foreign trade stated.

MEP is a set minimum price below which a produce cannot be sold to foreign buyers. It aims to check heavy exports at very cheap rates.

India has gradually been removing a spate of restrictions on exports clamped to control high food inflation over the past couple of years, mainly driven by weather shocks.

Consumer inflation in August cooled to a nearly five-year low of 3.65%. Food inflation stood at 5.35%, a notably lower pace compared to 9.94% in the same month of the previous year.

On September 14, the government scrapped an MEP of $950 per on basmati export. Authorities had also removed an MEP of $550 per tonne on overseas onion sales.

The world’s largest onion exporter had banned overseas sales in December last year to boost domestic supplies after patchy rains in key states led to a 20% fall in output. Shipments were allowed on May 4, 2024 but with an MEP plus 40% tariff.

“We are now thinking whether to allow such exports as the country has sufficient food grain stocks to fulfil the needs of other countries as well,” food minister Pralhad Joshi had said on August 24.

India is the world’s largest rice exporter, accounting for more than 40% of global rice shipments. In 2021-22, the country exported nearly 22 million tonne of the grain, about a sixth of its total domestic output.

Rice exports during April-June fell by nearly 34% to 3.2 million tonnes after the export of non-basmati white rice was restricted last July.

Source: Hindustan Times