All You Need to Know About the Curbs on Export of Rice

Probable Question

 Analyse the production and availability of major agricultural commodities with respect to ensuring food security in the country.

Context

The Indian government had earlier banned exports of wheat from the country, following an unexpected crop failure. Concerns over a similar situation arising now led it to impose curbs, albeit not outright ban, on rice shipments as well.

What are the Restrictions that Have Been Put on Rice Exports?

• Of the four categories of rice exports, export of basmati rice and parboiled non-basmati rice –are still freely allowed.The curbs are only for the other two i.e., raw (white) and broken non-basmati rice.
• Notification from the Directorate General of Foreign Trade in the Ministry of Commerce and Industry imposed a blanket ban on broken rice exports.

Reasons for Restrictions

• The possibility of India’s rice production declining significantly because of deficient monsoon rainfall in Uttar Pradesh, Bihar, Jharkhand and Gangetic West Bengal. 
• Some farmers have planted the lower-yielding shorter-duration varieties in the Kharif season, which is bound to reflect in output.
• Yields in Punjab and Haryana may turn out lower due to a new virus i.e. Southern Rice Black-Streaked Dwarf Virus (SRBSDV).

• With low Public wheat stocks to sustain the public distribution system (PDS), the rice export is being curbed .

India's Share in the Global Rice Trade

• India has a 40% share of the world’s total rice exports, at 21 mt-plus shipments in 2021, way ahead of Thailand’s (7.2 mt), Vietnam’s (6.6 mt) and Pakistan’s (4.8 mt).
• India, thus, matters to the global trade in rice – unlike in wheat, where it is only an occasional large exporter.

Read yesterday’s edition of Current Affairs on India’s Performance in Human Development Report 2022, in case you missed reading it.

Rice Export Destination

• 75% of basmati rice exports were to Iran and the Arabian Peninsula countries; the US, UK, Canada and Australia added up to another 10%.
• In non-basmati rice, almost 55% were exported to African countries,  while 9.5% each was exported to China and Bangladesh, followed by Benin and Nepal (8-9% each).

News source -

https://indianexpress.com/article/explained/explained-economics/rice-exports-government-curbs-impact-explained-8144177/

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