India Changes Rules for Exporting Non-Basmati White Rice
The Indian government has updated its export policy for non-basmati white rice, allowing its export under specific conditions with a minimum export price (MEP) of USD 490 per tonne. This change, effective immediately, was made in accordance with the Foreign Trade Act.
Previously, the export of non-basmati white rice, including semi-milled, wholly milled, polished, or glazed varieties, was prohibited. The new policy shifts the export status from ‘prohibited’ to ‘free’ but with a regulated price condition. This amendment aims to benefit exporters while ensuring price stability in the domestic market.
On August 21, India approved the export of 200,000 tonnes of non-basmati white rice to Malaysia. In October 2023, the country also authorized the shipment of 170,000 tonnes of the same rice variety to Malaysia. India had previously allowed the export of this type of rice to countries like Nepal, Cameroon, Cote d’Ivoire, the Republic of Guinea, the Philippines, Seychelles, UAE, Singapore, Comoros, Madagascar, Equatorial Guinea, Egypt, Kenya, and Tanzania, with different quantities allocated to each.
India banned the export of rice in July 2023 to control inflation and secure food security.
Doubts Revealed
Non-Basmati White Rice -: Non-Basmati white rice is a type of rice that is different from Basmati rice. It is commonly used in everyday meals in India.
Export Policy -: Export policy refers to the rules and regulations set by the government about selling goods to other countries.
Minimum Export Price -: Minimum export price is the lowest price at which a product can be sold to another country. For this rice, it is USD 490 per tonne.
USD -: USD stands for United States Dollar, which is the currency used in the United States. It is often used in international trade.
Prohibited -: Prohibited means something is not allowed. Earlier, exporting this rice was not allowed.
Free but Regulated -: Free but regulated means you can do it, but there are some rules you have to follow.
Inflation -: Inflation is when the prices of things go up, making everything more expensive.
Food Security -: Food security means making sure that everyone has enough food to eat.
