India imposes new condition on non-basmati rice exports

The Indian government has announced that exports of non-basmati rice will now be allowed only after registration with the Agricultural and Processed Food Products Export Development Authority (APEDA), an arm of the Commerce Ministry.

Bangladesh is one of the main importers of non-basmati rice from India.

“The export policy of non-basmati rice has been amended by incorporating an additional policy condition to the extent that export of non-basmati rice shall be permitted only upon registration of contracts with the APEDA,” the Directorate General of Foreign Trade (DGFT) said in a notification yesterday.

India, one of the world’s largest rice exporters, saw shipments of the grain rise 6.4 percent to $4.7 billion in the April-August period in the current fiscal year.

In September last year, the DGFT, under the Ministry of Commerce and Industry, lifted a blanket ban on non-basmati rice exports.

A joint secretary in the Commerce Ministry, who requested anonymity, said the move aimed to track and regulate the movement of non-basmati rice, potentially requiring exporters to register their business activities related to this commodity before shipping abroad.

“The registration would provide the government with better oversight of the non-basmati rice exports,” he said, adding, “It could help monitor the volume and destination of exports to ensure compliance with export policies and maintain domestic food security.”

An exporter said such a system could help prevent issues like the mis-declaration of the type of rice being exported. “Because this has been an area of concern in the past,” he added.

The move has come amid reports of losses of paddy in Punjab, Haryana, Bengal, and other states and another exporter, said, “It will help the government keep a tab on export demand and, if necessary, step in to bring things under control.”

Tags: exports, non-basmati rice, India, Bangladesh, demand