India Rice Exports

TMS Ep375: Wheat crop, Air India, rice exporters' shares, political symbols

Is India's wheat crop under threat? Can Air India wrest market share from Gulf airlines? Will the rally in shares of rice exporters sustain? How does the Election Commission allot party symbols?

India imposed a 20% duty on shipments of white and brown rice in September and banned broken rice sales abroad

The government on Tuesday lifted the ban on exports of organic non-basmati rice, including broken rice after the easing of domestic supplies moderated prices. The government had, in early September, banned the export of broken rice with an aim to increase domestic availability. This followed a 20 per cent duty on the export of non-basmati rice aimed at shoring up domestic supplies after prices surged in retail markets. In a notification, the Directorate General of Foreign Trade said the export of organic non-basmati rice, including organic non-basmati broken rice, will now be governed by rules that prevailed before the September ban.

Centre refutes the assertion of artificial shortage of fertilisers in country

Exports may still face some curbs with the imposition of a duty instead of the complete ban that is currently in place, but matters are still at a discussion stage, say sources

Basmati rice prices up 10-15% this year; may rise further as crop is 7-8% down

The surprise move trapped nearly 1 million tonnes of rice at ports or which had been in transit before the government made the announcement

India's recent curbs on rice exports could trigger a rally in global prices after more than a decade of stability, traders said, as New Delhi's protectionist move coincides with falling output

India will allow overseas broken rice shipments of 397,267 tonnes backed by letters of credit (LCs) issued before September 8

India will allow overseas broken rice shipments of 397,267 tonnes backed by letters of credit (LCs) issued before September 8, the government said

The commerce ministry on Tuesday clarified that there is no export ban on rice and traders can ship the commodity after paying 20 per cent duty. On September 8, the government banned exports of broken rice. In a trade notice, the directorate general of foreign trade said it has received representations regarding rice (5 per cent and 25 per cent broken) where irrevocable letter of credit has been issued before September 8 is also being stopped at the ports. "It is clarified in respect of normal rice that rice (5 per cent and 25 per cent) is already exempted as it is not broken rice but normal rice with permissible limits of broken rice as per standards. However, it will carry 20 per cent duty," it said.

The government imposed a ban on the export of broken rice with effect from September 9 to increase domestic availability

The government has again extended the last date for export of broken rice in transit by 15 days till October 15. It banned export of broken rice on September 8 but allowed shipments of certain consignments during September 9-15. On September 20, the date was extended till September 30. "Export of consignments of broken rice...as permissible under notification dated September 8 has beenextended till October 15, 2022," the Directorate General of Foreign Trade said in a notification.

India has defended its decision to ban export of wheat and rice at a WTO meeting even as some member countries have flagged concerns over the country's stand, an official said. At a meeting last week in Geneva, Senegal, the US and the European Union raised questions over this decision, stating it could have adverse implications on global markets. In May, India restricted export of wheat to enhance domestic availability. This month, it also banned export of broken rice and imposed a 20 per cent export duty on non-Basmati rice except for parboiled rice to boost domestic supplies amid a fall in area under paddy crop in the current kharif season. Defending its decision, India clarified that the ban on export of broken rice, which is used in poultry feed, follows a rise in the grain's exports in recent months which put pressure on the domestic market. In the case of wheat, food security concerns necessitated export curbs. India has also stated that the measures are temporary in nature

The government on Tuesday extended the last date for the export of broken rice in transit till September 30. It was earlier allowed till September 15. The government had banned exports of broken rice on September 8. "Export of consignments of broken rice...as permissible under notification dated September 8 has been extended till September 30, 2022," the directorate general of foreign trade said in a notification. September 8 notification had stated that during the period September 9-15, certain consignments of broken rice will be allowed to be exported.

At least 20 ships are waiting to load around 600,000 tonnes of rice at Indian ports as New Delhi's surprise export restrictions have trapped cargoes for nearly a fortnight

The ban on export of broken rice and duty on outbound shipment of non-basmasti/non-paraboiled rice will boost local supplies and ease pressure on the domestic prices, a senior government official said on Thursday. As per the data maintained by the Ministry of Consumer Affairs, the wholesale prices have risen by 10.7 per cent to Rs 3,357.2 per quintal as on September 14 from Rs 3,047.32 per quintal a year ago. The retail prices have gone up by 9.47 per cent to Rs 38.15 per kg from Rs 34.85 per kg. Animal feed prices too have increased. Maize price rose from Rs 19 per kg on January 1, 2022 to Rs 24 per kg on September 8, 2022. Broken rice price has also increased from Rs 16 per kg to Rs 22 per kg during the same period. The local prices have come under pressure following the likely drop in rice output by 6-7 million tonnes in the ongoing kharif season of 2022-23 crop year (July-June) despite enough stocks in the government godowns. "The local rice price have begun to stabilise after

India, which commands 40% share in the global rice trade, exported 21.23 mt of rice in 2021-22, against 17.78 mt in the previous year

"The duty has made Indian rice expensive. Exports would drop by at least 5 million tonnes," B.V. Krishna Rao, president of The Rice Exporters Association (TREA), told Reuters.

The restrictions were placed, because sowing has not been up to expectations on account of irregularities in rainfall