Rice exports a tad lower in H1, but trade sees shipments gaining pace in year ahead as govt eases curbs

India’s rice exports in value terms were a tad lower during the first half of the current financial year on a dip in non-basmati shipments, but exporters see a pick up in shipments in the year ahead with the Government easing curbs recently on both the category of rice.

Rice exports in value were down 3.33 per cent at $5120 million during April-September this year against $5296 million a year ago, per Commerce Ministry’s quick estimates. The category wise break-up and volume shipment details are yet to be released.

However, the value of shipments for September rose by around 25 per cent to $694.35 million from $555.81 million a year ago. This surge in shipments is attributed to the easing of curbs on basmati rice shipments. The Government removed floor price or the minimum export price (MEP) on basmati exports on September 13, which it had imposed in August 2023. Similarly, restrictions on the exports of non-basmati rice were also removed towards the end of September, which the trade feels will help India regain the lost markets.

Iran import ban

“We expect a pick up in basmati exports from later this month or early next month. Overall basmati exports for the fiscal would be higher than last year,” said Satish Goel, President, All India Rice Exporters Association. The removal of MEP was a timely decision by the Government and is seen helping the exporters, millers and also the farmers, Goel said.

Goel said the ban imposed by Iran on rice imports will come to an end sometime next month and that should boost the shipments. The prevailing tensions in West Asia has not had any impact on the rice shipments, he said.

West Asia is the main market for the India’s basmati rice exports. “We see good demand going ahead,” Goel said.

The non-basmati rice exporters are also optimistic about the growth in shipments in the year ahead with demand coming from the African nations. “Exports are slowly picking up. We expect to regain our markets in both East and West Africa and may also see some orders from Indonesia,” said B V Krishna Rao, President, The Rice Exporters Association.

Bumper harvest ahead

Easing the restrictions on non-basmati rice shipments towards end of September, the Government had allowed white rice shipments, while halving the export duty on parboiled rice to 10 per cent.

Basmati exports during April-August 2024 were up at over 23.22 lakh tonnes valued at $2,459 million over 20.10 lakh tonnes valued at $2224 million a year ago. However, non-basmati rice shipments for April-August 2024 were down at 40.73 lakh tonnes valued at $1,966 million from corresponding previous year’s 64.55 lakh tonnes valued at $2516 million.

India is heading for a bumper rice harvest with USDA projecting a record crop size of 139 million on higher-than-expected harvested area for the kharif crop, especially in the eastern States that have received better monsoon rainfall than the previous year.