India's non-basmati rice export slumps 57% in September on duty hike

Basmati rice export in contrast up 5.7% despite MEP

India’s non-basmati rice exports dropped by about 57 per cent in volume terms and 60 per cent in value in September this year as compared to the same month last year, following a slew of measures taken by the government.

However, the basmati rice exports rose almost 5.7 per cent in volume terms and 20.5 per cent in value in September 2023 as compared to the same month last year, according to the data from various agencies.
 

India, the world’s biggest rice exporter, imposed on August 26 an export duty of 20 per cent on parboiled rice and also imposed the Minimum Export Price (MEP) of $1,200 per tonne on basmati rice.
 

Subsequently, in late October, the MEP on basmati was lowered to $850 per tonne after the government started accepting consignments for clearance at a lower price.
 

Overall, data sourced from the Agricultural and Processed Food Products Export Development Authority (APEDA) shows that between April and September 2023, around 2.3 million tonnes of basmati rice was exported from India valued at around 

$2590 million.
 

During the same period last financial year, around 2.1 million tonnes of basmati rice was exported valued at around 

$2,278 million.
 

According to APEDA data, about 6.9 million tonnes of non-basmati rice was exported valued at $2,707 million in April to September of 2023-24 financial year.
 

During the same period of 2022-23 financial year, nearly 8.9 million tonnes of non-basmati rice was exported valued 

at $3,199 million.
 

“Other leading global rice exporters have been implementing policy measures to protect their food security and local inflation,” 

S Chandrasekaran, a leading trade policy analyst, told Business Standard.
 

“The year 2024 is likely to witness tight rice market supply and increasing rice prices “" Chandrasekaran said.
 

“India should exercise utmost precautionary principles if it intends to relax the rice exports,” he said.