iGrain India - Indonesia has agreed to import 10 lakh (1 million) tonnes of non-basmati white (raw) rice from India, marking a significant development in bilateral trade.
This decision follows the signing of an agreement between the two countries, ensuring a stable market for Indian farmers and potentially boosting their income by securing better prices for their produce.
The arrangement also comes after a previous attempt in early 2024 to import rice from India was postponed, with the agreement finally being reached this time.
India's government has taken measures to enhance the competitiveness of its rice exports. These include removing all restrictions on rice exports, including minimum export prices and customs duties, making Indian rice more affordable on the global market.
Additionally, the depreciation of the Indian rupee against the dollar has further contributed to the lower price of Indian rice, increasing its appeal to international buyers.
Despite a ban on commercial exports of non-basmati rice in July 2023, the government lifted this ban in September 2024, allowing exports to resume.
In the 2023-24 financial year, India exported $852.52 million worth of non-basmati white rice, and with the ban lifted, exports are expected to rise in the 2024-25 financial year.
India once exported non-basmati rice to 140 countries, particularly in Africa, South Asia, and the Middle East, and this reopening of trade channels is expected to revive that global market presence.