India is considering easing export restrictions on non-basmati risotto as supplies improve

A senior government official announced on Wednesday that India was considering loosening restrictions on non-basmati exports. This comes as inventories of the world's largest exporter of rice have soared, and farmers prepare to harvest their new crop within the next few weeks.

This move follows Prime Minister Narendra Modi’s government's implementation of a series farm measures to boost farmers’ incomes in advance of elections in states where growers are a major voting bloc, and after Modi’s defeat at the general election.

India has imposed various restrictions on rice exports for 2023, and will continue them in 2024 in order to maintain local prices under control ahead of the national elections in April-June.

Last week, to assist thousands of farmers who complained of a lack access to lucrative markets overseas such as Europe and the Middle East, the government removed the floor price on basmati rice exports.

Sanjeev Chhopra, the senior civil servant in the Food Ministry, said at a press conference that the government was considering changing the policy on exports of parboiled white rice and non-basmati.

Reports in July indicated that India considered replacing the 20% export duty on parboiled white rice with a fixed tariff on overseas shipments. New Delhi also examined the possibility of restarting the exports of white rice.

Farmers have planted rice in 4.1 million ha, up from 3.9 millions hectares the previous year. The average for the last five years has been 4 million ha.

The monsoon is reviving after a slow start in June. Rainfall has been 7.6% higher than average.

India's Weather Office defines normal or average rainfall as 96%-104% a 50 year average of 87cm (35inches) for a four-month season starting in June.

Summer-sown rice is planted during the wet months of June and Juli and harvested in October.

The Food Corporation of India's rice stocks on September 1 were 32.3 million metric tonnes, which is 38.6% more than the previous year. This gives the government ample room to relax the export restrictions.

Modi's Bharatiya Janata Party could appease angry farmers by easing rice export restrictions in Haryana where voters elect a state assembly on October 5, as well as in Maharashtra in western India, where elections will be held later this year.

In this year's elections, the BJP lost almost 75 rural seats.

Chopra said that the government is also considering increasing the domestic ethanol price and the rate of sugar mills selling the sweetener locally.

In an earlier report, it was reported that India would be raising the ethanol price and local sugar sales price. Reporting by Mayank Bhardwaj, Shivam Patel and Muralikumar Aantharaman; Editing and Sonia Cheema

(source: Reuters)