India Greenlights Non-Basmati White Rice Exports: A Strategic Move to Boost Global Supplies and Influence International Prices

India has given the green light for the export of non-basmati white rice, increasing supplies worldwide. Last year, India had put restrictions on rice exports and had planned to continue these limitations until 2024 as a measure to control price fluctuations before the national elections scheduled for April to June.

On Saturday, India authorized the resumption of non-basmati white rice exports due to an increase in the stockpile of the world's largest exporter of the grain. This decision comes as farmers are set to gather a new crop in the upcoming weeks.

Increased exports of rice from India could boost worldwide stock levels and lower global prices, which may compel other key exporters like Pakistan, Thailand, and Vietnam to decrease their prices, according to traders.

The government of New Delhi has established a minimum export price for non-basmati white rice at US$490 per metric ton, according to a government directive. This move follows the government's decision to eliminate the export tax on white rice just a day prior.

The ruling from New Delhi to permit merchants to trade non-basmati white rice globally comes after a range of actions to relax export limitations on high-quality, fragrant basmati and parboiled types. Additionally, on Friday, India cut the export tax on parboiled rice from 20 per cent to 10 per cent.

At the beginning of this month, the government eliminated the minimum price for exporting basmati rice. This measure was taken to assist numerous farmers who voiced concerns about not being able to access profitable foreign markets including Europe, the Middle East, and the United States.