{"id":42739,"date":"2024-10-01T04:45:10","date_gmt":"2024-09-30T23:15:10","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=42739"},"modified":"2025-10-13T12:08:44","modified_gmt":"2025-10-13T06:38:44","slug":"lifting-of-non-basmati-white-rice-export-ban-impact-on-indias-rice-market","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/lifting-of-non-basmati-white-rice-export-ban-impact-on-indias-rice-market\/","title":{"rendered":"Lifting of Non-Basmati White Rice Export Ban: Impact on India\u2019s Rice Market"},"content":{"rendered":"<h2><strong>What\u2019s in today\u2019s article?<\/strong><\/h2>\n<ul>\n<li>Why in News?<\/li>\n<li>Rice Cultivation<\/li>\n<li>Rice Production in India<\/li>\n<li>India\u2019s status as a rice exporter<\/li>\n<li>Export ban on Non-Basmati White Rice lifted<\/li>\n<\/ul>\n<h2><strong>Why in News?<\/strong><\/h2>\n<p>Recently, the Indian government lifted the ban on the export of Non-Basmati White Rice. However, it set a minimum export price (MEP) of $490 per tonne.\u00a0<\/p>\n<p>Earlier, the government had removed the 20% export duty on Non-Basmati White Rice and reduced the export duty on three other rice categories: &#8216;rice in the husk (paddy or rough)&#8217;, &#8216;husked (brown) rice&#8217;, and &#8216;parboiled rice&#8217; from 20% to 10%.<\/p>\n<h2><strong>Rice Cultivation<\/strong><\/h2>\n<ul>\n<li><strong>Crop Season<\/strong>\n<ul>\n<li>Rice is primarily grown during the <strong>Kharif season (June to November)<\/strong>, which coincides with the monsoon.\u00a0<\/li>\n<li>In some areas, it is also grown in the Rabi season (November to April), particularly in irrigated regions like Tamil Nadu and coastal Andhra Pradesh.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Climatic Conditions<\/strong>\n<ul>\n<li>Rice thrives in tropical and subtropical regions with high humidity. It requires:\n<ul>\n<li><strong>Temperature:<\/strong> An average temperature of 21\u00b0C to 37\u00b0C. The ideal temperature for germination is around 21\u00b0C, while the growing period requires temperatures above 25\u00b0C.<\/li>\n<li><strong>Rainfall:<\/strong> Rice needs plenty of water. It requires 150-300 cm of rainfall during the growing period, ideally distributed evenly throughout the season.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Soil Conditions<\/strong>\n<ul>\n<li>Rice grows best in clayey or loamy soils that retain water.\u00a0<\/li>\n<li>Alluvial soils in river basins and coastal areas are also ideal for rice cultivation. The soil should be deep, fertile, and capable of holding moisture.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Water Requirements<\/strong>\n<ul>\n<li>Rice is a water-intensive crop, usually grown in flooded fields (paddy fields). Adequate irrigation is necessary in areas with insufficient rainfall.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>Rice Production in India<\/strong><\/h2>\n<ul>\n<li><strong>Area of cultivation for rice<\/strong>\n<ul>\n<li>In fiscal year 2024, India had an estimated 47.6 million hectares of land area for rice cultivation.\u00a0<\/li>\n<li>India is the second-largest producer of rice globally, and the largest exporter.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li><strong>Production<\/strong>\n<ul>\n<li>India&#8217;s rice production in 2023-24 is estimated to be\u00a01378.25 lakh metric tons\u00a0(LMT), a 20.70 LMT increase from the previous year.<\/li>\n<\/ul>\n<\/li>\n<li><strong>State&#8217;s share in rice production<\/strong><\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/vajiram-prod.s3.ap-south-1.amazonaws.com\/State_s_share_in_rice_production_77963a285b.webp\" alt=\"State's share in rice production.webp\" \/><\/p>\n<ul>\n<li>Rice is produced in the coastal strips on the eastern and western pockets of the country, the plains of Assam in the north-east, and the foothills of the Himalayas.<\/li>\n<\/ul>\n<h2><strong>India\u2019s status as a rice exporter<\/strong><\/h2>\n<ul>\n<li><strong>Statistics<\/strong>\n<ul>\n<li>India is the second-largest rice producer and the largest exporter globally, contributing significantly to world rice trade.\u00a0<\/li>\n<li>Along with China, India accounts for over half of the world&#8217;s rice production. While China is the largest consumer, leaving little for export, India plays a dominant role in the export market.\u00a0<\/li>\n<li>According to the USDA, India accounted for 33% (17 million tonnes) of the world\u2019s total rice exports (53 million tonnes) in 2023.\u00a0\n<ul>\n<li>In 2022, before the Non-Basmati White Rice export ban, India contributed about 40% of the global rice exports (56 million tonnes).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>India\u2019s export breakup<\/strong>\n<ul>\n<li>India\u2019s rice exports are divided into two main categories: basmati and non-basmati rice.\u00a0<\/li>\n<li>Basmati rice accounts for nearly one-third of India\u2019s total rice exports, with 52.42 lakh tonnes exported in 2023-24.\u00a0<\/li>\n<li>Non-basmati rice has six subcategories: rice in husk (seed quality and other), husked (brown) rice, parboiled rice, non-basmati white rice, and broken rice.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Export destination<\/strong>\n<ul>\n<li>The primary destinations for Indian rice exports in 2023-24 are Saudi Arabia, Iran, Iraq, Benin, United Arab Emirates, Guinea, Senegal, Togo, and Yemen.<\/li>\n<li>Saudi Arabia was the leading importer of Indian rice in terms of export value, mainly purchasing basmati rice varieties.<\/li>\n<li>Non-basmati white rice went to Kenya, Mozambique, Cameroon, Vietnam, Malaysia, Togo, Madagascar, Cote D\u2019 Ivoire, and Benin in the biggest quantities.<\/li>\n<\/ul>\n<\/li>\n<li><strong>India\u2019s competitor<\/strong>\n<ul>\n<li>Two east Asian countries\u2014<strong>Thailand and Vietnam<\/strong>\u2014are the two main competitors of India in the global rice market.\u00a0\n<ul>\n<li>In 2023, the combined rice export of these two countries was almost equal to Indian exports.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li>Besides, Pakistan, Cambodia and the United States are also in the list of rice exporters.<\/li>\n<li>Philippines, Indonesia, Vietnam, China, European Union, Nigeria, Iraq, Saudi Arabia and Malaysia are the <i><strong>top rice importers<\/strong><\/i>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>Export ban on Non-Basmati White Rice lifted<\/strong><\/h2>\n<ul>\n<li><strong>About the news<\/strong>\n<ul>\n<li>The Centre has lifted the ban on export of Non-Basmati White Rice. It has, however, imposed a minimum export price (MEP) of $490 per tonne.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Reasons behind lifting the ban<\/strong>\n<ul>\n<li><strong>Higher Sowing of Paddy<\/strong>\n<ul>\n<li>India has seen an increase in paddy sowing due to a good monsoon, with most of the crop being planted during the kharif season.\u00a0<\/li>\n<li>By September 20, 2023, the paddy cultivation area reached 413.50 lakh hectares, a 2.2% increase over last year.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Record Rice Production<\/strong>\n<ul>\n<li>India\u2019s total rice production for 2023-24 (kharif, rabi, and summer) is estimated at 137.82 million tonnes, a 1.5% increase compared to last year.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Declining Wholesale Prices, Stable Retail Inflation<\/strong>\n<ul>\n<li>On September 27, the wholesale price of rice was Rs 3,324.99 per quintal, down from Rs 3,597.09 a week ago and Rs 3,502.91 a month ago.\u00a0<\/li>\n<li>However, retail inflation based on the Consumer Price Index has remained in double digits for the past two years, peaking at 13.09% in July 2023.\u00a0<\/li>\n<li>Inflation dropped to 9.52% in August after the government\u2019s export ban.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Surplus Rice Stocks<\/strong>\n<ul>\n<li>As of September 1, the <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/fci-role\/\" target=\"_blank\">Food Corporation of India (FCI)<\/a> held 323.11 lakh tonnes of rice in its Central pool.\u00a0<\/li>\n<li>Including unmilled paddy, the total stock amounted to 423 lakh tonnes, well above the required buffer stock norms of 135.40 lakh tonnes for July and 102.50 lakh tonnes for October.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Who will get benefitted?<\/strong>\n<ul>\n<li>The lifting of the ban will benefit traders, who previously paid a 20% duty, and is expected to improve export sentiment.\u00a0<\/li>\n<li>Farmers growing premium varieties like <strong>Sona Masoori<\/strong> (mainly in <strong>Karnataka, Andhra Pradesh, and Telangana<\/strong>) are likely to benefit, as they were impacted by the ban.\u00a0<\/li>\n<li>However, for domestic consumers, already high retail prices may increase further.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3><strong>Q.1. Why did India lift the export ban on Non-Basmati White Rice?<\/strong><\/h3>\n<p>The ban was lifted due to increased paddy sowing, record rice production estimated at 137.82 million tonnes, declining wholesale prices, and surplus stocks in the Food Corporation of India.<\/p>\n<h3><strong>Q.2. Who benefits from the lifting of the rice export ban?<\/strong><\/h3>\n<p>Traders and farmers growing premium varieties like Sona Masoori will benefit, while domestic consumers may face higher retail prices as a result of the lifting.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/export-ban-non-basmati-white-rice-lifted-why-impact-9594407\/\" target=\"_blank\" rel=\"nofollow noopener\">Export ban on Non-Basmati White Rice lifted: why, what is the likely impact<\/a> | <a href=\"https:\/\/www.dgciskol.gov.in\/writereaddata\/Downloads\/20240808163758A%20brief%20report%20on%20Export%20of%20Rice%20by%20India.pdf\" target=\"_blank\" rel=\"nofollow noopener\">DGCI<\/a> | <a href=\"https:\/\/www.thehindubusinessline.com\/economy\/agri-business\/fall-in-west-bengal-output-drags-indias-rice-production\/article67939499.ece\" target=\"_blank\" rel=\"nofollow noopener\">The Hindu Businessline<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Indian government has lifted the export ban on Non-Basmati White Rice, setting a minimum export price of $490 per tonne. Discover the implications for farmers, traders, and domestic consumers as rice production reaches record levels.<\/p>\n","protected":false},"author":5,"featured_media":42740,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-42739","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/42739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=42739"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/42739\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/42740"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=42739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=42739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=42739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}