“India to Resume Rice Exports to UAE, the Fourth Country Since Export Ban”
India, the world’s largest rice exporter, is set to export 75,000 tonnes of non-basmati rice to the United Arab Emirates, marking the fourth country to receive rice shipments after India imposed a temporary export ban in July due to domestic inflation concerns. This decision aligns with India’s strategy to provide rice to friendly nations for their food security needs while keeping a close eye on global food security concerns.
India, the world’s leading exporter of rice, has approved the export of 75,000 tonnes of non-basmati rice to the United Arab Emirates (UAE), becoming the fourth nation to receive rice shipments since India imposed an export ban in July to address concerns over domestic inflation. This decision reflects India’s commitment to support friendly countries in meeting their food security needs while actively monitoring global food security challenges.
A government notification released on Monday outlined that the rice shipments to the UAE would be facilitated by the National Cooperative Export Ltd, a state-backed entity established in January following a cabinet decision.
India took the significant step of prohibiting overseas rice sales in July to mitigate high cereal inflation, which has persisted in double digits. At that time, the government announced that it would permit rice exports to friendly nations for their food-security requirements upon clearance by the external affairs ministry.
Since the imposition of the export ban, India has allowed the export of over 1.4 million tonnes of white rice to Singapore, Bhutan, and Mauritius, underscoring its commitment to addressing global food security concerns.
A food ministry official emphasized India’s stance, stating, “As a nation concerned about global food-security issues, India will continue to offer rice to friendly countries following a thorough evaluation, provided that the exported quantities are used for domestic consumption rather than for trade.”
India’s export ban on this staple commodity, in which the country holds a 40% share of global trade, led to price spikes in world markets. The FAO rice price index soared to its highest level in 15 years, recording a 40.31% year-on-year increase in August 2023.
In addition to white rice, India has also exported broken rice to countries in need since the ban. These shipments include 500,000 tonnes to Senegal, 200,000 tonnes to Indonesia, 100,000 tonnes to Mali, and 50,000 tonnes to Gambia.
Notably, India’s export restrictions on non-basmati white rice came shortly after Russia withdrew from the Black Sea grain deal, sparking concerns of a global food shortage. Another ban, imposed in September of the previous year, on the export of broken rice remains in effect.
To manage exports of parboiled rice, India has imposed a 20% tariff. While India is not a significant exporter of wheat, it banned wheat exports in May of the previous year.
The constraints on food exports primarily stem from domestic concerns, as India grapples with elevated food inflation and the potential for a rice shortage due to the disruptive El Niño weather pattern affecting the monsoon. These challenges coincide with the approaching festive season, characterized by increased food demand, and the Modi government’s impending general election next year, along with state assembly polls in five states this year.
Sources By Agencies
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