Bengal exporters express relief as center lifts export ban on non-basmati white rice
Stakeholders of the West Bengal rice industry on Saturday expressed relief after the Center lifted the ban on exports of non-basmati white rice.
The government’s move is expected to help reopen 500-600 rice mills in the state, which were closed one year ago due to reduced demand due to export restrictions, said Bengal Rice Mills Association president Sushil Kumar Choudhury.
Removal of export ban will also enable farmers to get better prices above the minimum support price (MSP), he said.
“The lifting of the ban on exports will not only increase the performance of rice mills but will also improve the realization of farmers’ ratio, which was defeated last year. Out of 1,400-1,500 mills in West Bengal, 500-600 were closed due to weak export demand and increasing losses,” Choudhury told the PTI.
On average, each mill employs about 500 people directly and indirectly.
Earlier in the day, the government lifted a ban on overseas exports of non-basmati white rice and set a minimum export price (MEP) of USD 490 per ton.
Export of non-basmati white rice is banned from 20 July 2023 to improve domestic availability.
“The export policy for non-basmati white rice (partially milled or fully milled rice, whether polished or unpolished)…Amended from prohibited to free, subject to MEP of USD 490 per ton and immediate implementation of orders,” said the -Directorate General of Foreign Trade (DGFT) in the notice.
Highlighting the national situation, vice-president of the Indian Rice Exporters’ Federation, Dev Garg, welcomed the move, saying that the remaining stocks, with a bumper crop of rice expected, are likely to increase by 275 lakh metric tonnes by March 31, 2025.
“The non-opening of exports would have been very difficult for the government to manage because, firstly, we don’t have enough storage for this excess commodity and secondly, the cost of administration, currently at Rs 45,000 crore, could rise to Rs 1, 05,000 crore because of the surplus,” said Garg.
“India’s decision to impose restrictions on the sale of non-basmati white rice is a major change in the agricultural sector,” said RiceVilla Foods CEO Suraj Agarwal.
This important step will not only increase the income of foreign traders but will also empower farmers, who can expect higher profits with the arrival of the new kharif crop, he added.
Mr. Soumen Kundu, a paddy trader from Burdwan, said that this move will improve the business, which has been reduced by half to use the mills in the area, where 50-60 millers grind ‘Gobindo Bhog’ rice.
West Bengal Agriculture Marketing Minister Becharam Manna said the lifting of the ban will bring relief, and is expected to be more effective after “farmers endured heavy floods in several districts due to uncontrolled release of water by the DVC”.
