India will export 110,000 tonnes of rice to Guinea-Bissau, Djibouti, and Tanzania on humanitarian grounds. This move comes despite existing export restrictions on certain rice varieties imposed by India. The restrictions included a ban on broken rice exports in September 2022 and on non-basmati white rice in July 2023, implemented to ensure national food security and control domestic prices.
Since the ban, India has been selectively allowing rice exports to diplomatic partners and needy nations on a case-by-case basis. The current allocation involves 50,000 tonnes of broken rice each to Guinea-Bissau and Djibouti, and approximately 30,000 tonnes of non-basmati white rice to Tanzania. This export will be conducted through National Cooperative Exports Ltd, a government export body.
Prior to this, the Indian government had approved limited exports of non-basmati white rice and broken rice to various Asian and African countries for humanitarian reasons. African nations are significant importers of Indian rice. For instance, in the previous year, Togo imported 88% of its rice from India, Benin procured 61% of its broken rice from India, and nearly half of Senegal's rice imports were from India.
Before the export restrictions, Benin, Senegal, and Côte d'Ivoire were among the top 10 markets for Indian rice. The export bans, including a 20% tariff on parboiled rice and a minimum sale price for basmati rice, were responses to domestic inflationary pressures.
India's food inflation was recorded at 8.30% in January, down from 9.53% in December 2023. However, rice inflation remained high at 13% in January compared to 12.3% in December and 10.4% in January 2023. The export restrictions have had a significant impact on the global rice market and India's position in global trade.
Tags
India