India lifted its 14-month ban on the export of non-basmati white rice on Friday, with immediate effect.
The ban, imposed in July last year to stabilise Indian domestic rice supply and control prices, was reversed as the country’s inventories surged and farmers are set to harvest a new crop in the coming weeks, reports NDTV.
In addition, India reduced the export duty on parboiled rice from 20% to 10%, according to a government notification.
This move is expected to lower India’s export prices, boost shipments, and prompt competing rice-exporting nations like Thailand, Vietnam, Pakistan, and Myanmar to reduce their prices as well.
The 20% duty on parboiled rice was originally imposed in 2023 after the country's crop suffered due to below-normal rainfall.
The new reduction in export duties also applies to brown rice and husked rice, with the rate now set at 10%, effective immediately.
While the export duty on white rice has been reduced to zero, the government has not yet clarified whether private traders will be allowed to export or if exports will remain restricted to government-to-government deals.
Earlier this month, India removed the floor price for basmati rice exports to help thousands of farmers gain access to lucrative overseas markets, including Europe, the Middle East, and the United States.
As of September 1, rice stocks at the Food Corporation of India stood at 32.3 million tonnes, 38.6% higher than last year, giving the government room to ease its rice export restrictions.
India’s rice production has also benefited from abundant monsoon rains, with farmers planting rice on 41.35 million hectares, an increase from 40.45 million hectares last year and higher than the five-year average of 40.1 million hectares.