NEW DELHI: India’s rice exports may fall by 40 to 40 lakh tonnes this fiscal, exporters said, adding to the ban on broken rice as well as export duty on non-basmati rice.
India, which commands a 40 per cent share in the global rice trade, exported 21.23 million tonnes of rice in 2021-22 against 17.78 million tonnes in the previous year. Before the COVID pandemic, exports stood at 9.51 million tonnes in the financial year 2019-20.
During the April-August period of the current fiscal, government data shows that the country has already exported 9.35 million tonnes, as against 8.36 million tonnes in the year-ago period.
“Exports may fall to 16-17 million tonnes in this financial year due to the ban on broken rice and 20 per cent export duty,” said the former president of the All India Rice Exporters’ Association (AIREA). Vijay Setia told PTI.
He said the country is exporting non-basmati rice at $380-400 per tonne, which is lower than the rate of shipments from other countries.
Value realization after these decisions is “expected to improve at par with our competitors”, setia Told.
Food Secretary on Friday Sudhanshu Pandey Explained the reason behind the ban on export of broken rice.
Pandey had said there was an “absolutely unusual” increase in shipments of broken rice and that the broken grains were not available in sufficient quantities for animal feed as well as for the ethanol blending programme.
“The export share of broken rice increased to 22.78 per cent during April to August in this financial year as compared to 1.34 per cent in the same period of 2019-20,” the secretary said.
India exported 3.89 million tonnes of broken rice in the financial year 2021-22 and out of that China imported 1.58 million tonnes of broken rice in the last financial year.
Broken rice exports stood at 2.06 million tonnes in 2020-21, just 2,70,000 tonnes in 2019-20 and 1.22 million tonnes in 2018-19.
Broken rice exports rose to 2.13 million tonnes in the April-August period of the current fiscal from 1.58 million tonnes in the year-ago period.
“The export policy of broken rice… has been amended from ‘free’ to ‘prohibited’,” the Directorate General of Foreign Trade (Directorate General of Foreign Trade) said in a notification dated September 8, 2022.
The notification is effective from Friday, September 9, 2022.
As per DGFT notification, the provisions under Foreign Trade Policy 2015-2020 regarding transitional arrangements will not be applicable to this notification. It said some consignments of broken rice would be allowed to be exported during September 9-15.
The government has not made any policy changes in boiled rice so that farmers continue to get good remunerative prices. There is neither any restriction nor customs duty on the export of Basmati rice.
Basmati rice shipments declined to 3.94 million tonnes in the last fiscal, from 4.63 million tonnes in 2020-21. However, exports of premium basmati rice increased to 1.82 million tonnes during April-August of this fiscal, from about 17 lakh tonnes in the year-ago period.
In the non-basmati category, the export of boiled rice increased to 7.43 million tonnes in FY22 from 6.17 million tonnes in the previous fiscal, while the export of non-basmati rice increased to 5.21 million tonnes from 4.23 million tonnes.
The rise in domestic wholesale and retail prices of rice was also one of the reasons for imposing restrictions by the government.
Wholesale prices rose 8 per cent to Rs 3,291 per quintal on September 7 from Rs 3,041 per quintal a year ago, while retail prices have risen 6.38 per cent to Rs 37.5 per kg from Rs 35.25 per kg.
The price of animal feed has also increased. The price of maize increased from Rs 19 per kg on January 1, 2022 to Rs 24 per kg on September 8, 2022. The price of broken rice has also increased from Rs 16 per kg to Rs 22 per kg during the same period.
On Thursday, the government imposed a 20 per cent export duty on non-basmati rice, except unboiled rice.
According to a notification by Revenue DepartmentAn export duty of 20 per cent has been imposed on ‘rice in husk (paddy or raw)’ and ‘rice in husk (brown)’. The export duty has come into effect from September 9.
A ban on broken rice and an export duty of 20 per cent on non-basmati rice has been imposed amid concerns over a possible decline in rice production.
According to data released by the Agriculture Ministry on Friday, the area under paddy has declined by 4.95 per cent to 393.79 lakh hectares so far in the current kharif season due to poor rains in some states.
The data shows that paddy was sown in 414.31 lakh hectares (LH) in the year-ago period. It is the main Kharif crop and its sowing begins with the onset of southwest monsoon in June and harvesting from October.
India’s total rice production during the crop year 2021-22 (July-June) is estimated to be a record 130.29 million tonnes (111.76 million tonnes in Kharif and 18.53 million tonnes in Rabi season) compared to 124.37 million tonnes in the previous year.
The Food Ministry said on Friday that the country’s rice production in Kharif (summer sown) may fall by 6-7 million tonnes, but the country will still have surplus production.
The Center is sitting on a stock of 47 million tonnes of rice, including rice equivalent to unmilled paddy, as of July 1. The buffer stock requirement as of July 1 is 13.5 million tonnes of rice.
India, which commands a 40 per cent share in the global rice trade, exported 21.23 million tonnes of rice in 2021-22 against 17.78 million tonnes in the previous year. Before the COVID pandemic, exports stood at 9.51 million tonnes in the financial year 2019-20.
During the April-August period of the current fiscal, government data shows that the country has already exported 9.35 million tonnes, as against 8.36 million tonnes in the year-ago period.
“Exports may fall to 16-17 million tonnes in this financial year due to the ban on broken rice and 20 per cent export duty,” said the former president of the All India Rice Exporters’ Association (AIREA). Vijay Setia told PTI.
He said the country is exporting non-basmati rice at $380-400 per tonne, which is lower than the rate of shipments from other countries.
Value realization after these decisions is “expected to improve at par with our competitors”, setia Told.
Food Secretary on Friday Sudhanshu Pandey Explained the reason behind the ban on export of broken rice.
Pandey had said there was an “absolutely unusual” increase in shipments of broken rice and that the broken grains were not available in sufficient quantities for animal feed as well as for the ethanol blending programme.
“The export share of broken rice increased to 22.78 per cent during April to August in this financial year as compared to 1.34 per cent in the same period of 2019-20,” the secretary said.
India exported 3.89 million tonnes of broken rice in the financial year 2021-22 and out of that China imported 1.58 million tonnes of broken rice in the last financial year.
Broken rice exports stood at 2.06 million tonnes in 2020-21, just 2,70,000 tonnes in 2019-20 and 1.22 million tonnes in 2018-19.
Broken rice exports rose to 2.13 million tonnes in the April-August period of the current fiscal from 1.58 million tonnes in the year-ago period.
“The export policy of broken rice… has been amended from ‘free’ to ‘prohibited’,” the Directorate General of Foreign Trade (Directorate General of Foreign Trade) said in a notification dated September 8, 2022.
The notification is effective from Friday, September 9, 2022.
As per DGFT notification, the provisions under Foreign Trade Policy 2015-2020 regarding transitional arrangements will not be applicable to this notification. It said some consignments of broken rice would be allowed to be exported during September 9-15.
The government has not made any policy changes in boiled rice so that farmers continue to get good remunerative prices. There is neither any restriction nor customs duty on the export of Basmati rice.
Basmati rice shipments declined to 3.94 million tonnes in the last fiscal, from 4.63 million tonnes in 2020-21. However, exports of premium basmati rice increased to 1.82 million tonnes during April-August of this fiscal, from about 17 lakh tonnes in the year-ago period.
In the non-basmati category, the export of boiled rice increased to 7.43 million tonnes in FY22 from 6.17 million tonnes in the previous fiscal, while the export of non-basmati rice increased to 5.21 million tonnes from 4.23 million tonnes.
The rise in domestic wholesale and retail prices of rice was also one of the reasons for imposing restrictions by the government.
Wholesale prices rose 8 per cent to Rs 3,291 per quintal on September 7 from Rs 3,041 per quintal a year ago, while retail prices have risen 6.38 per cent to Rs 37.5 per kg from Rs 35.25 per kg.
The price of animal feed has also increased. The price of maize increased from Rs 19 per kg on January 1, 2022 to Rs 24 per kg on September 8, 2022. The price of broken rice has also increased from Rs 16 per kg to Rs 22 per kg during the same period.
On Thursday, the government imposed a 20 per cent export duty on non-basmati rice, except unboiled rice.
According to a notification by Revenue DepartmentAn export duty of 20 per cent has been imposed on ‘rice in husk (paddy or raw)’ and ‘rice in husk (brown)’. The export duty has come into effect from September 9.
A ban on broken rice and an export duty of 20 per cent on non-basmati rice has been imposed amid concerns over a possible decline in rice production.
According to data released by the Agriculture Ministry on Friday, the area under paddy has declined by 4.95 per cent to 393.79 lakh hectares so far in the current kharif season due to poor rains in some states.
The data shows that paddy was sown in 414.31 lakh hectares (LH) in the year-ago period. It is the main Kharif crop and its sowing begins with the onset of southwest monsoon in June and harvesting from October.
India’s total rice production during the crop year 2021-22 (July-June) is estimated to be a record 130.29 million tonnes (111.76 million tonnes in Kharif and 18.53 million tonnes in Rabi season) compared to 124.37 million tonnes in the previous year.
The Food Ministry said on Friday that the country’s rice production in Kharif (summer sown) may fall by 6-7 million tonnes, but the country will still have surplus production.
The Center is sitting on a stock of 47 million tonnes of rice, including rice equivalent to unmilled paddy, as of July 1. The buffer stock requirement as of July 1 is 13.5 million tonnes of rice.