Export ban on non-basmati white rice removed

Sub: Eco

Sec: External sector

Context:

The Union government has decided to allow exports of non-basmati white rice (semi-milled or wholly-milled, whether or not polished or glazed) with immediate effect, reversing the ban on such exports imposed in July 2023.

Details:

It has set a minimum export price of $490 a tonne.
It has been removed from the prohibited list for exports to the free list with immediate effect, subject to the minimum export price.
The Ministry of Finance reduced the duty on parboiled rice from 20% to 10%.
18 million tonnes of non-basmati rice were exported annually before the restrictions were imposed last year.
The export of premium varieties of white rice to markets such as Malaysia, Indonesia, and eastern Asian countries will now be revived.
Exports dropped 50% because of the restrictions.

Basmati Rice:

Basmati rice is a type of aromatic long-grain rice, primarily grown in India and Pakistan.
Key characteristics include:
- Distinct nutty flavor and fragrant aroma
- Long, slender grains that elongate when cooked
- Fluffy texture when cooked properly
- Lower glycemic index compared to other white rice varieties
- Often used in Indian and Middle Eastern cuisine

Basmati Rice Production in India:

India is the world’s largest producer of basmati rice. The crop is primarily grown in the Indo-Gangetic Plains, spanning several northern Indian states.
Major Producing States: Punjab, Haryana, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Delhi.
Key importers of Indian basmati rice include Iran, Saudi Arabia, Iraq, UAE, and European countries.
Top Basmati Rice Producers in India: Punjab, Haryana, Uttar Pradesh, Uttarakhand, Jammu & Kashmir

GI Tag for Basmati Rice:

Basmati rice received its Geographical Indication (GI) tag in India in 2016.
The GI tag covers basmati rice grown in specific regions of: Punjab, Haryana, Himachal Pradesh, Uttarakhand, Parts of western Uttar Pradesh, Parts of Jammu & Kashmir

Non-Basmati Rice:

It includes a wide variety of rice types, such as:
- Short-grain rice (e.g., sushi rice)
- Medium-grain rice (e.g., Arborio used in risotto)
- Other long-grain varieties (e.g., Jasmine rice)
- Brown rice variants
Non-basmati rice types can vary greatly in flavor, texture, and cooking properties depending on the specific variety.

Parboiled Rice:

Parboiled rice is rice that has undergone a special processing method before milling. The process involves:
- Soaking the rice in water
- Steaming it under pressure
- Drying it before milling
Key characteristics of parboiled rice include:
- Firmer, less sticky grains when cooked
- Higher nutrient content than regular white rice (some nutrients from the bran migrate into the grain during processing)
- Slightly yellowish colour
- Longer cooking time than regular white rice
- Often preferred in certain dishes for its texture and ability to remain separate when cooked.
- Both basmati and non-basmati rice can be parboiled. The parboiling process is a method of treatment rather than a variety of rice itself.

Source: TH