Rice stocks three times higher than target, will India soon ease rice export ban? India: Rice export ban affects farmers' income |
On August 18, the Directorate General of Foreign Trade of India issued an official notification, clarifying that approved shipments of non-basmati white rice will be exempted from the ban, including those approved for transit and those that had reached Indian shores before the export restriction was announced. The export period will be extended until August 31.
India imposed export restrictions on non-basmati white rice including semi-milled, fully milled, polished and glazed varieties on July 20.
The move came after stakeholders and customs authorities submitted to the General Department of Foreign Trade questions about whether exporters must meet all three criteria or just one.
Exceptions require any one of the following conditions: Where the loading of non-basmati rice on board the vessel has commenced before the notification. Where the bill of lading is filed and the vessels have berthed or arrived and anchored at Indian ports before the notification date and turnaround has been allotted before the notification. The approval for such vessels will be subject to confirmation by the port authorities. Where the consignment has been handed over to customs and registered for export with corroborative evidence of date and time stamping of such goods.
Such exports will be allowed until August 31. The Directorate General of Foreign Trade has clarified that if an exporter meets any of the above conditions, they will be allowed to export on an exception basis. The export ban was announced in July to reduce prices for domestic consumers, according to a statement from the Ministry of Consumer Affairs, Food and Public Distribution. Non-basmati white rice accounts for about 25% of the country’s total rice exports.
Earlier, in the wake of India’s rice export ban, the Singapore Food Agency (SFA) had been in close contact with the Indian authorities to seek an exemption from the country’s ban on non-basmati rice exports. India, the world’s largest rice exporter, has banned some overseas sales of a variety that accounts for about a quarter of its total exports. The move is aimed at ensuring adequate availability and tempering price increases in the domestic market.
Non-basmati rice from India accounts for about 17% of Singapore's rice imports. By 2022, India will account for about 40% of Singapore's rice imports, with the country importing rice from more than 30 countries, the SFA said.
India accounts for more than 40% of global rice exports, so the decision to ban exports risks exacerbating food insecurity in countries that rely heavily on rice imports. Countries affected by the ban include African nations, Türkiye, Syria and Pakistan – all of which are struggling with high food price inflation.
Global demand has seen India’s non-basmati white rice exports rise 35% year-on-year in the second quarter, when the ban was announced. The increase came even after the Indian government banned shipments of broken rice and imposed a 20% export tax on white rice in September.
Under Singapore's Rice Reserve Scheme, rice importers are required to maintain a reserve equivalent to twice their monthly imports. This helps ensure adequate supply of rice in the market. The SFA said that Singapore's overall rice supply is currently stable and there is enough rice for everyone if people only buy what they need.
DFI Retail Group, which operates giant cold-storage and supermarket chains in Singapore, said demand for rice from India has been stable except for a small increase after news of India’s ban on non-basmati white rice exports. FairPrice Group, Singapore’s largest supermarket operator, saw a slight increase in sales of rice imported from India in the first week of the export ban.
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