India’s Rice Exports Remain Resilient Despite Curbs in 2024

Sub : Eco

Sec: External sector

Why in News?

India’s rice exports have remained steady in 2024 despite temporary curbs earlier in the year. The surge in premium basmati rice shipments balanced the decline in non-basmati rice exports, helping India maintain its position as the world’s largest rice exporter.

Context:

India, responsible for over 40% of global rice exports, imposed restrictions on rice exports in 2023 to control domestic prices and ensure food security. However, with curbs lifted in September-October 2024, exports rebounded by the year-end.

Key Highlights

Export Performance in 2024
- Total rice exports: 17.8 million metric tonnes (MMT), slightly lower than 2023’s 17.86 MMT.
Basmati rice exports:
- Increased 16.3% to a record 5.7 MMT.
- Major buyers: Saudi Arabia, Iraq, UAE.
Non-basmati rice exports:
- Declined by 6.9% to 12.1 MMT.
- Countries like Bangladesh, Cameroon, Djibouti, and Gambia reduced imports due to high prices.
Lifting of Export Curbs
- India lifted most export restrictions on non-basmati and premium basmati rice in September-October 2024, enabling exports to recover in the December quarter.
Impact on Global Markets
- India’s steady exports helped stabilize global rice prices, which had surged during the restrictions.
- The shipments also reduced India’s record-high domestic stockpile, caused by a bumper harvest.
Domestic Factors
- India’s bumper rice crop ensured surplus availability for exports.
- Despite initial curbs, the government balanced domestic food security with global market demands.

Significance of Steady Exports

Global Benefits:
- Stabilized global rice markets by increasing supply.
- Benefitted import-dependent nations despite high prices.
India’s Advantage:
- Maintained its dominance as the world’s largest rice exporter.
- Record basmati shipments strengthened ties with key trading partners in the Middle East.

Why did India Pose Restrictions on the Export of Rice?