Bengal exporters get relief as Centre lifts ban on non-basmati white rice

Stakeholders of West Bengal's rice industry on Saturday heaved a sigh of relief after the Centre removed the ban on overseas shipments of non-basmati white rice.

The government's move is expected to help reopen 500-600 rice mills in the state, which had been closed for the past one year due to a slump in demand in the wake of export restrictions, Bengal Rice Mills Association president Sushil Kumar Choudhury said.

The lifting of the ban on exports will also enable farmers to fetch better prices over the minimum support price (MSP), he said.

"The removal of the export ban will not only boost the operation of rice mills but also improve the average realisation for farmers, which had been subdued in the past year. Of the 1,400-1,500 mills in West Bengal, 500-600 had been closed due to weak export demand and mounting losses," Choudhury told PTI.

On average, each mill directly and indirectly employs around 500 people, he said.

Earlier in the day, the government removed the blanket ban on overseas shipments of non-basmati white rice and imposed a minimum export price (MEP) of $ 490 per tonne.

Exports of non-basmati white rice have been banned since July 20, 2023 to boost domestic supply.

"The export policy for non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or gazed) ...is amended from prohibited to free, subject to MEP of $ 490 per tonne with immediate effect and until further orders," the directorate general of foreign trade (DGFT) said in a notification.

Highlighting the national scenario, Indian Rice Exporters' Federation vice president Dev Garg welcomed the move, stating that the surplus stocks, with an expected bumper rice crop, are likely to increase by 275 lakh metric tonnes by March 31, 2025.

"The non-opening of exports could have been very difficult to manage for the government because, firstly, we do not have enough storage for this excess commodity and secondly, the carrying cost, currently at Rs 45,000 crore, could rise to Rs 1,05,000 crore due to the surplus stock," Garg said.

"India's bold decision to lift restrictions on non-basmati white rice exports is a game-changer for the agricultural sector," RiceVilla Foods CEO Suraj Agarwal said.

The strategic move will not only boost exporters' income but also empower farmers, who can expect higher returns with the arrival of the new kharif crop, he added.

Soumen Kundu, a paddy trader from Burdwan, said the move would improve business, which had been halved for mills in the area, where 50-60 mills process 'Gobindo Bhog' rice.

West Bengal Agricultural Marketing Minister Becharam Manna said the lifting of the ban would bring relief, and better realisation is expected after "farmers endured severe floods in several districts due to the uncontrolled release of water by the DVC".