The Union government has banned export of white rice (non-basmati) with immediate effect as part of its efforts to control rising food grain prices. Though exporters have expressed concern over the ban, the farmers from Andhra Pradesh are unlikely to be impacted much by the Centre’s decision, opine observers.
According to information, rice exports from India touch nearly 18 million tonnes to various countries across the globe. Of this, 7 million tonnes is white rice, 8 million tonnes parboiled rice and 3 million tonnes broken. The rice exports from Andhra Pradesh constitute 10-15% of the total exports from the country, with a 20-30% share in total parboiled rice exports and 1 million tonnes in broken rice, say sources in the government and exporters.
Rice Exporters’ Association of India president B.V. Krishna Rao opines the ban on export of rice may not impact the farmers in A.P. For one, white rice export from Andhra Pradesh is “not happening much. Then there is no ban on export of parboiled rice. “The impact of the ban will not be much on the States where the Minimum Support Price (MSP) announced by the Central government is strictly implemented,” he reasons.
AP Agricultural Mission vice-chairman M.V.S. Nagi Reddy says as the season has already ended there may not be any problem. The State government is procuring most of the paddy produced in the State, for distribution under the Public Distribution System (PDS). Further, much of the produce — superfine varieties like BPT 5204 (Samba Mahsuri) in A.P. or RNR 15048 in Telangana — is consumed locally, he adds.
However, there may be a slight fall in prices in the domestic market, Mr. Rao says. The fine varieties like HMT or BPT may see a price drop of up to ₹5 a kg, from the current price of around ₹50 a kg, while the price of parboiled rice may fall by up to ₹2 from ₹32 a kg.
The price of long grain rice too is expected to decrease by about 5%, says a senior official.
As the notification on Thursday did not specify a time limit for the ban, exporters are of the view that it may be in force for a year as the government will try to keep prices of essential commodities under check ahead of general elections in 2024.
