Centre bans export of non-basmati white rice
28th Jul, 2023
India's recent ban on non-basmati white rice exports has sent shockwaves through the global market, leading to a scramble for supplies and heightening concerns over food security.
India’s Rice exports:
- India is the world's second-largest producer after China and the largest exporter of rice.
- The country commands 40% share in the global rice trade.
- In 2022, it shipped 22m tonnes to more than 140 countries. Around half of those shipments were of non-basmati rice.
The Indian rice varieties cultivated widely are Basmati, Joha, Jyothi, Navara, Ponni, Pusa, Sona Masuri, Jaya, Kalajiri (aromatic), Boli, Palakkad Matta, etc.
- Key buyers: Benin, Bangladesh, Angola, Cameroon, Djibouti, Guinea, Ivory Coast, Kenya and Nepal, Iran, Iraq, Saudi Arabia.
- Polished Rice and Basmati Rice constitute around 55% of total rice export from India.
- Due to the current geo-political situation, the international price of rice was lucrative, leading to high export of rice as compared to previous year.
Rice as a Crop:
- Rice (Oryza sativa) has a major role in diet, economy, employment, culture and history, and this staple food (of eastern and southern India) plays a pivotal role in the food and livelihood security of people.
- Rice is a nutritional staple food which provides instant energy as its most important component is carbohydrate (starch).
- On the other hand, it is poor in nitrogenous substances and fat content or lipids.
- It is fundamentally a kharif crop in India and demands a temperature of around 25 degrees Celsius and above, and rainfall of more than 100 cm.
- Major producing states: West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Odisha and Chattisgarh.
Need of such a step:
- Increasing price due to increasing exports: The domestic prices of rice are on an increasing trend due to sharp increase in exports ascribed to high international prices due to geo-political scenario. The retail prices have increased by 11.5% over a year and 3% over the past month.
- Supply shortage: A supply shortage was recently created in the domestic market due to extreme weather conditions.
Impact of the ban
- India accounts for more than 40 percent of all global rice shipments, so the decision could "risk exacerbating food insecurity in countries highly dependent on rice imports".
- The major agriexports of India are cereals, spices, cashew, oilcake/meals, tobacco, tea, coffee and marine products.
- Drivers of export: The two big contributors to India’s agri-export growth have been rice and sugar.
- APEDA: The initiatives taken by the Agricultural and Processed Food Products Export Development Authority (APEDA) has helped the country in achieving 84 percent of its total export target for the year 2022-23 in nine months of the current fiscal. APEDA has undertaken initiatives like:
- Paperless office (re-engineering, digital signatures, electronic payment facility)
- APEDA Mobile App
- phase-wise delivery of online services, monitoring and evaluation, uniform access
- Virtual trade fair to make governance more efficient and effective
- Founded: 1986
- APEDA works under the Ministry of Commerce and Industry.
- The Authority replaced the Processed Food Export Promotion Council (PFEPC).
- APEDA is mandated with the responsibility of export promotion and development of the following scheduled products.