India allows export of 2 lakh tonnes of white rice to Malaysia under G2G

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The Government has permitted the export of 2 lakh tonnes (lt) of non-Basmati white rice to Malaysia, taking the total approval to 2.04 lt so far this fiscal. The latest approval has stipulated the shipments to be carried out through the National Cooperative Exports Limited (NCEL).

India had banned the export of non-basmati white and broken rice and imposed 20 per cent duty on shipments of parboiled non-Basmati rice in 2023 to check domestic prices. However, permits have been granted from time to time to allow export of the white rice through National Cooperative Exports Limited (NCEL) based on diplomatic requests of friendly countries to meet their food security needs.

Exports of 2,00,000 tonnes of non-Basmati white rice has been allowed to Malaysia through NCEL, the Directorate General of Foreign Trade (DGFT), said in a notification on August 19.

Sales of FCI stock

In April the DGFT had allowed the export of 1,000 tonnes of Kala Namak rice (a GI type grown in Uttar Pradesh) by asking the UP government to issue the permits. It also allowed 1,000 tonnes each to Malawi and Zimbabwe in June and to Namibia in July.

Last year, exports of some quantities of white non-Basmati were allowed to countries like Nepal, Cameroon, Cote D’ Ivore, Guinea, Malaysia, UAE, Philippines and Seychelles.

Recently the government has resumed sales of rice from the stock held by the Food Corporation of India (FCI) through weekly e-auction. However, the offtake is very less, about 5,000 tonnes, sources said.

Demand to allow premium varieties

Exporters have urged the government to lift the ban on export of white rice and if required a minimum export price (MEP) may be fixed. Some of the exporters have demanded the categorisation of Basmati and non-Basmati be lifted as there are several premium varieties of non-Basmati like Soan Masuri, Govinda Bhog, Kala Namak that command even higher prices than Basmati which become the casualties when a ban is imposed.

While imposing the ban on non-Basmati rice, the government had allowed shipments of Basmati rice after fixing an MEP. Also, there is no export levy of 20 per cent charged on parboiled Basmati rice, exporters said.

Export of non-Basmati rice dropped to 19,35,045 tonnes in April-May of this fiscal from 28,46,216 tonnes a year ago, official data show. The country had exported over 111 lt of non-Basmati rice in 2023-24.