Centre bans export of non-basmati white rice to check price rise

Subject : Economy

Section: External Sector

Concept :

Recently, the Centre banned the export of non-basmati white rice with immediate effect to boost domestic supply and help control inflation.
Paddy had been planted in around 10.32 million hectares, which is almost 9.8 percent less than the area covered during the same period of last year.

Why the centre bans export of non-basmati rice ?

The domestic prices of rice are on an increasing trend. The retail prices have increased by 11.5 percent over a year and 3 percent over the past month
Rice stocks in the central pool as on July 1 are estimated to be around 48.65 million tonnes, almost 13 percent less than the same period last year.
This sharp increase in exports can be ascribed to high international prices due to the geopolitical scenario, El Nino sentiments, and extreme climatic conditions in other rice-producing countries
Export
Non-basmati white rice accounts for nearly 25-30 percent of total rice exported from the country.
The total exports of non-basmati white rice from India were $4.2 million in 2022-23, as against $2.62 million in the preceding year.
Major destinations of India’s non-basmati white rice exports include Thailand, Italy, Spain, Sri Lanka, and the USA.
Volume-wise, India exported 6.5 million tonnes of this variety in FY23, compared to 5.3 million tonnes in the previous financial year (a rise of nearly 22 percent).

Why India is Crucial to global rice Trade?

It accounts for more than 40% of the world’s rice exports.
Its rice shipment in 2022 was more than the next 4 exporters combined – Thailand, Vietnam, Pakistan, and the US.
It exports rice to more than 140 countries.
India exported 17.86 mt of non-basmati rice in 2022, including 10.3 million tons of non-basmati white rice.

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.