India Lifts Non-Basmati Rice Export Ban Amid Rising Production

Why in the news?

The Indian government lifted its export ban on non-basmati white rice due to higher production, easing market restrictions, while concerns remain over possible domestic price increases.

India Lifts Non-Basmati Rice Export Ban Amid Rising Production

Why was the export ban lifted?

  • The export ban was imposed last year due to a slight dip in rice production and concerns about erratic monsoon patterns.
  • This year, conditions improved with good monsoon rainfall, resulting in higher paddy sowing—2% more area under rice cultivation compared to last year.
  • Rice production is estimated to increase by5% in 2023-24, with total output expected at 137.82 million tonnes.
  • Declining wholesale rice prices and stable retail inflation also contributed to the decision.

Who will be impacted?

  • The lifting of the ban will benefit traders and farmers, especially those growing premium non-basmati varieties like Sona Masoori.
  • It will also allow state governments to buy rice for welfare schemes and distilleries for ethanol production.
  • However, domestic retail rice prices could increase due to eased export restrictions.

India’s position in the global rice market:

  • India is the world’s largest rice exporter, accounting for 33% of global exports in 2023.
  • Non-basmati white rice makes up 25% of India’s total rice exports, with countries like Kenya, Mozambique, and Vietnam among key buyers.
  • India faces competition from Thailand and Vietnam in the global rice market.

Key Facts About Rice:

  • Rice is a staple food for most of India’s population.
  • It is a kharif crop, requiring high temperatures (above 25°C) and annual rainfall above 100 cm.
  • In areas with less rainfall, irrigation is used for rice cultivation.
  • Southern states and West Bengal grow 2-3 rice crops annually due to favourable climate.
  • In West Bengal, three rice crops are grown: ‘aus,’ ‘aman,’ and ‘boro.’
  • About 25% of India’s cropped area is under rice cultivation.
  • Leading producers: West Bengal, Uttar Pradesh, and Punjab.
  • High-yielding states include Punjab, Tamil Nadu, Haryana, and Andhra Pradesh.
  • India is the second-largest rice producer globally, after China.

Associated Article:

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