iGrain India - New Delhi. In September 2022, 100 percent broken rice and in July 2023, commercial exports of non-Basmati white rice were banned and then in August 2023, a minimum export price (MAP) of $ 1200 per tonne was fixed for Basmati rice while imposing an export duty of 20 percent on non-Basmati Sela rice.
Although the export of Basmati rice was not affected because after two months the MAP was reduced to $ 950 per tonne, but the closure of commercial exports of white rice had a huge impact on the total shipment. During 2023-24, the total export of rice declined by 18.5 percent to 165 lakh tonnes as compared to the financial year 2022-23.
The situation improved a little due to the shipment of white rice during April-July 2023, otherwise the total exports could have declined even further. Basmati rice is exported from India mainly to the countries of the Middle East and Gulf region and non-Basmati rice is shipped to West African countries.
As far as the current financial year (2024-25) is concerned, in the first two months, the government has not given any indication of making any change in the rice export policy. Commercial export of white rice is closed.
There is an export duty of 20 percent on Sela rice and MAP of $ 950 per tonne is also applicable for Basmati rice, while its international market price has come down to $ 800-850 per tonne. If there is no positive change in the government policy, rice exports may decrease further in the current financial year.