India Lifts Rice Export Ban After 14 Months

India has lifted the ban on rice exports after 14 months. In a statement issued by the country's central government on Friday, it was announced that exporters are now allowed to export all types of rice, except Basmati.

The export duty on rice has also been reduced. Previously set at 20%, the rate has now been lowered to 10%.

India's rice exporters are naturally elated by this decision. Suraj Agarwal, the CEO of one of India’s leading rice export companies, Rice Villa, told Indian media outlet NDTV, "This decision by the government will be a game-changer for India's domestic agriculture sector as well as the international rice market. On one hand, rice prices in the global market will decrease, while on the other, farmers will also benefit."

Key Stats:

1. Duration of Rice Export Ban: 14 months.
2. Export Duty Reduction: Previously 20%, now reduced to 10%.
3. Global Impact of India’s Rice Export Ban:
   • Rice prices in the international market increased by 11.7%.
   • This was the highest price surge in 11 years.
4. India’s Share in Global Rice Trade:
   • 40% of the rice traded globally comes from India.
5. Top Rice-Producing Countries:
   • Bangladesh, China, India, Indonesia, Thailand, and Vietnam.

 

Rice is primarily produced in India’s eastern, northeastern, and southern states. Last year, production in these regions was affected due to insufficient rainfall. In response, on July 20, 2023, the central government of India imposed a ban on rice exports to stabilize the domestic market.

Rice is the staple food for more than 3 billion people worldwide. According to the U.S. Department of Agriculture, six countries—Bangladesh, China, India, Indonesia, Thailand, and Vietnam—are currently the top rice producers in the world.

However, India remains the leading exporter of rice. About 40% of the rice traded in the global market comes from India.

Following India's ban on rice exports, the international market saw a rise in rice prices. According to Reuters, the price of all types of rice increased by 11.7%, marking the highest price surge in 11 years.