Virendra Pandit
New Delhi: Following concerns expressed abroad over food insecurity in many countries in the wake of the ongoing Russia-Ukraine war, India has allowed the export of 10.34 lakh tons of non-basmati white rice to seven countries on a government-to-government (G2G) basis but has extended the ban on sugar exports beyond October 3.
The Director-General of Foreign Trade (DGFT), on Wednesday, said in a notification that the shipments would be handled by the National Cooperative Exports Ltd.
The seven countries receiving Indian non-basmati rice are the Philippines (2.95 lakh tons), Cameroon (1.9 lt), Malaysia (1.7 lt), Cote d’Ivoire (1.42 lt), the Republic of Guinea (1.42 lt), Nepal (95,000 tons), and Seychelles (800 tons).
India banned the export of white rice from July 20, 2023, to ensure adequate supplies in the domestic market and cool rising prices. Now, after concerns expressed by the World Trade Organization (WT) and various quarters, New Delhi has permitted the exports following requests from the respective governments for the supply of non-basmati white rice.
In July, the government said it would meet the food security demands of neighboring and vulnerable countries. Additionally, India has agreed to supply rice to Singapore as well as it has good bilateral relations with the island nation.
India has also imposed a 20 percent export duty on par-boiled rice and fixed USD 1,200 a ton as the minimum export price for basmati rice. In September 2022, the Centre banned shipments of broken rice.
These curbs followed worries over the impact of a truant southwest monsoon on the paddy crop during this year’s Kharif season.
A late start to the monsoon in June, excessive rainfall in July, and a 32 percent deficient rainfall in August markedly impacted the annual rainfall season this year. The South-West monsoon accounts for about 85 percent of the country’s annual rainfall.
This year, the paddy crop was affected by heavy rains during July in Haryana and Punjab. The prolonged dry period in August affected the crop in Telangana, Andhra Pradesh, and Karnataka.
New Delhi said rice production will touch 112 million tons (mt) this year. However, it is yet to release its first advance estimate of the crop, which is usually done in the last week of September.
Meanwhile, the Centre again extended the restrictions on the export of sugar beyond October 31, 2023. New Delhi had banned mills from exporting sugar in the season beginning in October, the media reported.
The move aims to increase the availability of sugar in the domestic market during the ongoing festive season, followed by the elections.
“Restriction on export of sugar (raw sugar, white sugar, refined sugar, and organic sugar) is extended beyond October 31, 2023. Other conditions will remain unchanged,” the DGFT said in a notification.
However, these restrictions will not be applicable to sugar being exported to the European Union (EU) and the US under CXL and TRQ duty concession quotas. A specified amount of sugar is exported to these regions under CXL and TRQ (tariff rate quotas).
India is the highest producer and the second-largest exporter of sugar in the world.
An exporter requires a license or permission from the government to export sugar, which is currently in the restricted category.