What govt curbs on exporting rice mean for India and the world

Subject: Economy

The Department of Revenue in the Ministry of Finance notified the slapping of a 20% duty on exports of rice “other than parboiled and basmati rice”

What are the restrictions imposed?

There are four categories of rice exports. Out of these, exports in the case of two – basmati rice and parboiled non-basmati rice –are still freely allowed. The curbs are only for the other two: raw (white) and broken non-basmati rice.
The Directorate General of Foreign Trade in the Ministry of Commerce and Industry imposed a blanket ban on broken rice exports.

Why have these restrictions been placed?

The possibility of India’s rice production declining significantly because of deficient monsoon rainfall
Farmers have planted 2.1 million hectares (mh) less area under rice compared to the same period last year.
Yields in Punjab and Haryana turn out to be lower due to a new virus that has caused “dwarfing” of paddy plants
Public wheat stocks on August 1, at 26.65 mt, were the lowest in 14 years, while the same for rice, at 40.99 mt, was quite comfortable
The government is worried about their depletion in the event of a sub-par kharif harvest.
The political pressure to continue the free-foodgrains scheme (Pradhan Mantri Garib Kalyan Anna Yojana) beyond September.

What is India’s place in Rice and Wheat trade?

The country has a 40% share of the world’s total rice exports, with its 21 mt-plus shipments last year thus number one in rice exports
However for Wheat India is only an occasional large exporter

Where does India export rice to?

More than 75% of basmati exports last year were to Iran and the Arabian Peninsula countries; the US, UK, Canada and Australia added up to another 10%.
In non-basmati rice, almost 55% went to African countries – including Benin, Ivory Coast, Senegal, Togo, Guinea

Parboiled Rice

Parboiling is a process where the paddy is soaked in water, steamed and dried while retaining its outer husk.
However, there is no specific definition of parboiled rice of the Food Corporation of India or the Ministry of Consumer Affairs, Food and Public Distribution.
Recently Government has decided to Stop Purchases as FCI has sufficient stocks and there is no demand for such grain under the Public Distribution System (PDS).
Telangana is a surplus parboiled producing region and does not consume parboiled rice, but only produces which is always surplus and delivered to FCI.

Rice Varieties Suitable for Parboiling:

Generally, all varieties can be processed into parboiled rice, but it is ideal to use long slender varieties to prevent breakage during milling.
However, aromatic varieties should not be parboiled because the process can make it lose its aroma.

Advantages

Parboiling makes rice tougher which reduces the chances of the rice kernel breaking during milling.
Parboiling also increases the nutrient value of the rice.
Parboiled rice has a higher resistance to insects and fungi.