Understanding curbs on Rice export

Understanding curbs on Rice export

News: Recently, the government has implemented several measures to regulate rice exports and ensure domestic food security.

Stats of rice in India:
• India is the second-largest producer of rice in the world, after China.
• India is the world’s largest exporter of rice, with a 45% share.
• Non-Basmati rice exports have been on a consistent upward trend over the past three years.
• The latest rice production estimate in India for the Rabi season 2022-2023 indicates a decrease of about 14% compared to the previous year.
• The government has increased the Minimum Support Price (MSP) for rice.

Recent steps taken on Rice exports

Why is Indian government imposing restrictions on rice and wheat exports?
• To ensure adequate supply of grains within the nation. For example, depleting rice stocks, especially in light of continuation of Pradhan Mantri Garib Kalyan Anna Yojana.
• Impact of El Nino on production of rice in several states.
• India’s retail inflation surged to a 15 month high of 7.44% in July 2023.
• The minimum export price rule is meant to prevent illegal exports of non-basmati white rice from being misrepresented as basmati rice.

Way Forward
• Consider classifying rice for export policy decisions as common and speciality rice, rather than just as Basmati and non-Basmati.
• Protect varieties of rice with Geographical Indication (GI) recognition from general market interventions.