“Explaining the Ban on Export of Non-Basmati White Rice (HS Code 1006 30 90): Centre’s Reasons & Impact on Indian Fruits & Vegetables”

Explaining the reasons behind the ban on the export of non-Basmati white (raw) rice from July 20, the Centre has said the export of this variety had increased by 34.54 per cent in the first three months of 2022-23.

In a written reply in the Lok Sabha on Wednesday, Anupriya Patel, Union Minister of State for Commerce and Industry, said about 15.54 lakh tonnes (lt) of this variety of rice (HS Code 1006 30 90) was exported during April-June of 2023-24 against only 11.55 lt during the corresponding period of previous fiscal, recording a growth of 34.54 per cent.

Non-Basmati white rice constituted 26.66 per cent of total rice exported during 2021-22 and 2022-23. The export of this variety increased from 33.66 lt (Sept-March 2021-22) to 42.12 lt (Sept-March 2022-23) even after the imposition of a 20 per cent export duty from September 8, 2022.

Steep rise in prices

On the reasons behind the ban, Patel said the sowing area under the rice as on July 9, 2023. in the current kharif season declined by 13.26 per cent due to delay in the monsoon arrival.

As per third Advanced Estimate of the Department of Agriculture and Farmers Welfare, the production was only 158.95 lt during the rabi season 2022-23 against 184.71 lt during the rabi season of 2021-22, registering a decline of 13.84 per cent. the

Moreover, rice prices in Asia had increased to a very high level on fears of possible adverse effect of the onset of El Nino. The international prices of Indian rice (25 per cent broken) and Indian rice (5 per cent broken) had increased about 30 per cent and 34 per cent, respectively, in the past one year, she said.

“In view of the above circumstances, the Government has ‘prohibited’ export of non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or glazed: Other) with effect from July 20, 2023 to check the increase in domestic prices,” the Minister said.

Broken rice ban

The export of broken rice (HS Code 1006 40 00) was made ‘prohibited’ with effect from September 8, 2022 to ensure its supply to domestic ethanol programme and poultry / cattle feed. However, there was no change in policy for export of parboiled rice (HS Code 1006 30 10) and Basmati rice (HS Code 1006 30 20), she said, adding, it has been kept as ‘free’ and there is no imposition of 20 per cent export duty on parboiled rice and Basmati rice.

Stating that there is increasing demand for Indian parboiled rice and broken rice (25 per cent broken) in the African market, she said the export of parboiled rice to African countries has increased from $1,740.44 million in 2021-22 to $2,052.52 million in 2022-23.

Similarly, the export of wholly milled or semi-milled rice (25 per cent broken) is increasing to the countries such as Kenya and Mozambique. The export of wholly milled or semi-milled rice (25 per cent broken) has also increased from $1,006.33 million in 2021-22 to $1,386.88 million in 2022-23, the Minister said.

Fruits exports rise

To a separate query, Anupriya Patel said the overall exports of fresh fruits amounted to $270.28 million during the first quarter of 2023-24 compared to $215.56 million during corresponding period of 2022-23, registering a growth of 25.38 per cent.

Export of fresh vegetables increased to $204.50 million during Q1 of 2023-24 against $193.47 million in the corresponding period of 2022-23, recording a growth of 5.7 per cent.

“However, export of certain fruits and vegetables such as oranges and citrus fruits, apples, tomatoes, etc has declined mainly due to higher freight and logistics costs and high import duty imposed by countries, especially Bangladesh, which is a major destination for export,” she said.

Subsidised Bharat Dal

Answering a question, Ashwini Kumar Choubey, Union Minister of State for Consumer Affairs, Food and Public Distribution, said the Government launched the sale of ‘chana dal’ in retail packs under the brand name of ‘Bharat Dal’ on July 17 2023 at highly subsidised rates of ₹60 a kg for 1 kg pack, and ₹55 a kg for 30-kg pack, in order to make pulses available to consumers at affordable prices.

‘Bharat Dal’ is being distributed through retail outlets of NAFED, NCCF, Kendriya Bhandar and Safal. Under this arrangement, ‘chana dal’ is also made available to state governments for supplies under their welfare schemes, police, jails, and also for distribution through the retail outlets of state government controlled cooperatives and corporations, the Minister said.