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India’s Rice Export Ban 2023 and its Global Impact

India’s Rice Export Ban 2023 – Agricultural and Other Factors Leading to the Ban

Few things frightened the Indian government and other country governments as much as hungry voters. In India, Rice export ban occurred due to unexpected heavy monsoon rains in early July, many paddy fields were destroyed, which has led to an uncontrollable increase in rice prices.

The late arrival of monsoons led to a large rain deficit up to mid-June and heavy rains from the last week of June had caused significant damage to crops. In this blog post, we will get to know about the reasons behind the rice export ban, the potential conclusion of the rice ban situation, and the different opinions surrounding the controversial rice ban in India.

India has a vast population, and the availability and affordability of rice are essential for millions of citizens. By stopping international exports, the government will secure a sufficient amount of rice supplies for the country’s population, particularly in current times and challenging situations such as crop failures or global food crises.

 As per the rice stocks surveys held in July 2023, Apart from climatic factors, there are various reasons that led to the food crisis and the rice ban in India are as follows

  • This food crisis started last year September 2022. Firstly India banned broken rice exports.
  • This has led to the imposition of a 20% duty on exports of various grades of rice.
  • Impact of COVID-19 – Larger rice releases were in the food distribution for the needy.
  • Less public distribution supplies have been observed since late 2022

Hence, this made the Indian government execute a policy that created a shock in the nation and also in other countries. This shocking announcement has created mixed responses, heated debates, and discussions across India. One of the main reasons for implementing the rice export ban in the country by the Indian government is to ensure adequate food security within the country.

Paddy farmers who mainly grow rice crops for exporting will face some challenges due to restricted market opportunities. However, the main priority is for domestic consumption. There will be increased demand for rice within the country, which will finally benefit paddy farmers.

Countries importing  Indian rice might face increased prices and rice supply shortages, which will also affect the nations in developing their sources of rice imports and trade dealing opportunities with other rice-exporting countries.

Other rice trading nations, such as Thailand, Vietnam, and Pakistan, will see increased market demands as they get a chance to fill the void caused by India’s absence in the international rice exporting market. This situation could lead to high competition among rice-exporting countries.

Rice shipments will be allowed based on permission given by the Indian government to other rice-importing countries to meet their food preservation needs and by verifying on request of their governments, as per the notification released.

Those rice exporters, who had started exporting rice or loading the grain on ships on or before the notification, will still be allowed to export the rice to other countries. The rice exporters, who have submitted their rice shipment bills and already booked vessels at Indian ports, will also be allowed to send rice, the notification says.

This decision will ensure that Indian farmers continue to benefit from global rice trade prices. The Indian government did not pass any restrictions on Exporting non-basmati parboiled rice and basmati rice to other countries. Basmati rice export turnover stood at 4.4 million tons in 2022. Mainly middle Eastern countries like Iran, Iraq, and Saudi Arabia buy premium quality basmati rice from Indian rice exporters. India is the largest exporter of non-basmati rice with a 45% market share globally. Due to the rice ban only non-basmati parboiled rice is allowed for other country exports.

Rice export ban

Non-basmati parboiled rice varieties available for international shipment

GR-11 Parboiled, Kuruva parboiled, Idly parboiled, Rejected rice parboiled, Jaya parboiled, Swarna half boiled, Jaya parboiled, Non-BPT parboiled, IR-64 parboiled, HMT parboiled, Nellore Sona, IR – 64 parboiled, IR-8 Parboiled, Swarna parboiled.

Conclusion :

The announcement of a rice export ban in India is a tough decision. While the main aim is to address nations’ concerns like food storage or security and to reduce the increase in rice prices in the present situation, it also has suggestions for Indian farmers and the global rice market. As the scenario continues to evolve, Indian government policymakers will need to maintain a balance between securing the domestic rice needs and at the same time conserving India’s role in the global rice exports. Additionally, supporting affected Indian farmers during this tough transition will be crucial to ensure the long-term sustainability of India’s agricultural sector.