India, the world's largest rice exporter, has lifted restrictions on non-basmati white rice exports as of September 29, 2024. This decision comes after the government imposed several bans earlier in the year to control domestic prices in response to lower rainfall.
In 2022, India accounted for 40% of global rice exports, sending 22.2 million metric tons to over 140 countries. The recent lifting of the ban is expected to enhance global rice supply and potentially lower prices, impacting major producers such as Pakistan, Thailand, and Vietnam.
The Indian government set a minimum price of $490 per metric ton for non-basmati white rice and reduced the export tax on parboiled rice from 20% to 10%. This move aims to support farmers and reinstate India's position in the international market.
Despite the bans earlier this year, which led to a 20% decrease in rice exports, the Indian Food Corporation reported a significant increase in rice stockpiles, with 32.3 million metric tons stored as of September 1, 2023, up 38.6% from the previous year. Good monsoon rains have encouraged farmers to plant rice on 4.135 million hectares this year, compared to 4.045 million hectares last year.
As a result of India's export restrictions, buyers in Asia and Africa turned to other suppliers, causing rice prices in those countries to reach a 15-year high. Traders believe that resuming non-basmati rice exports will increase rural farmers' incomes and help India regain its competitive edge in the global market.