After Wheat & Sugar, Government may Restrict Rice Exports

After wheat and sugar, the government may consider restricting rice exports to ensure adequate domestic supplies and prevent price increases. A committee led by the Prime Minister's Office is conducting a product-by-product analysis of essential commodities, including non-Basmati rice, and swift action is expected if price increases are detected.

"Inflation is being addressed at the highest possible level. The price monitoring committee meets on each product to determine the best course of action" said per an official.

After China, India is the world's second-largest rice producer, exporting rice to over 150 countries in 2021-22.

According to another official, export restrictions on five products are being considered, including wheat and sugar.

According to sources, rice export restrictions could be similar to those imposed on sugar, whose exports have been limited to 10 million tonnes (mt).

Retail inflation reached an eight-year high of 7.79 percent in April, prompting the government to intervene with price-control measures.

These included a reduction in excise duty on diesel and gasoline, a Rs 200 subsidy on gas cylinders for Ujjwala beneficiaries, export restrictions on wheat and sugar, lower import duty on steel and plastic raw materials, and a levy on export duty on iron ore and steel intermediates.

"Many countries now have a policy of importing essential grains. India desires food security for itself, its neighbours, and vulnerable countries." The first officer stated that restrictions on non-Basmati rice could be considered because it is consumed by everyone.

In FY22, India exported $6.115 billion in non-Basmati rice and was the top forex earner across all agricultural commodities. Rice production in 2021-22 is expected to reach a record 127.93 mt, up 11.49 mt from the previous five years' average of 116.44 mt, according to Second Advance Estimates for 2021-22.