Non-basmati rice export ban leaves NRIs in lurch

A look at the 2022 export statistics of the commodity tells us that while the world imported 55.4 million metric tonnes of rice, India had exported 22.2 million metric tonnes. This in effect means that white 'Pilaf' will continue to entertain the people's palate on the dining tables of Iran, Iraq and Saudi Arabia, the same might not be the case elsewhere in dozens of countries that use non-Basmati rice. Indians, particularly, the Telugus, Kannadigas, Tamilians and Malayalees and those from the Eastern belt of the country are now in a quandary over the rice supply prospects.

In just a couple of days, rice has done the vanishing trick from several countries including the US. Most Indians are rushing to the grocery shops to shore up their rice stocks – at a premium now. They fear the absence of a rice bowl from the dining table itself soon.

All the trouble, thanks to the Modi' government's decision to ban export of non-Basmati ordinary rice last Thursday. It has instantly not only impacted the prices of the commodity worldwide but also taken away the bowl of rice from many Indian households abroad. India is a major exporter of rice to several countries with Andhra Pradesh leading the contribution to it.

According to the data from the Agricultural and Processed Food Products Export Development Authority (APEDA), Andhra Pradesh was the largest exporter of rice from India during the financial year 2020-21, with a share of 34.85% in the country's total rice exports. Other major rice-exporting states in India include Punjab, Haryana, and Uttar Pradesh.

A look at the 2022 export statistics of the commodity tells us that while the world imported 55.4 million metric tonnes of rice, India had exported 22.2 million metric tonnes.This in effect means that white 'Pilaf' will continue to entertain the people's palate on the dining tables of Iran, Iraq and Saudi Arabia, the same might not be the case elsewhere in dozens of countries that use non-Basmati rice. Indians, particularly, the Telugus, Kannadigas, Tamilians and Malayalees and those from the Eastern belt of the country are now in a quandary over the rice supply prospects.

The absence of it will be felt more telling during the oncoming festival season as no south Indian household will be happy without rice. Along with 'pulihora or puliyogare' even 'bisibele bath' and biryanis and pulaos will be difficult to taste now.

An entrepreneur from Chicago, Shanmukha Sharma Velicheti (an NRI who hails from Krishna District of AP) told The Hans India "this ban came as a bolt from the blue as they say.

The cost of one kg bag was one dollar initially and now it has doubled. Moreover, there is a ration. We have to necessarily buy Basmati rice in advance for the festival season as my wife is OK with it being a Gujarati". Srinivas Dharmaram, originally from Warangal district and living in New Jersey, said "Basmati rice, though available, is not liked by us much.

It is ok for Biryanis but for our South Indian taste buds it's a 'No No'. We had to stand in line for a couple of hours. Some of our north Indian friends have started stocking up Basmati rice".

Keeping in view the requirements of the Indian people and also the election season, the Modi government has prohibited the export of non-basmati white rice with immediate effect, according to a government notice on Thursday. Yet another reason for the decision is said to be the late arrival of the monsoon which raised fears of a shortfall in the production this year.

For typical Indians, anyway, anything in short supply, more of it is the need!

But will the ban of non-Basmati rice help the people locally here? Could be. The Centre hopes that it would at least prevent an escalation in price due to shortfall in the production if any.

It should, common sense points out. While the producers in Thailand, Vietnam and Pakistan could be happy due to the window it opens for their rice variety to be exported as the shortfall of supply to the extent of 40 percent in the market would not be matched by even those countries.

Statistics show us that India exports rice to more than 140 countries including Basmati rice to Benin, Bangladesh, Angola, Cameroon, Djibouti, Guinea, Ivory Coast, Kenya and Nepal while Iran, Iraq and Saudi Arabia mainly buy premium basmati rice from India.

(India exported 17.86 million tonnes of non-basmati rice in 2022, including 10.3 million tonnes of non-basmati white rice. In September 2022, India banned exports of broken rice and imposed a 20% duty on exports of various grades of rice, reports suggest.

The country has not barred the export of basmati rice and parboiled rice, which stood at 4.4 million tons and 7.4 million tons, in 2022).

Several countries in the world are already facing a shortage in food grains due to various reasons like drought, ravaging fires due to climate change and Russia-Ukraine conflict. The present Indian will affect it adversely further. Of all the countries, China has already been affected significantly when the Indian government banned broken rice export and imposed the 20 percent duty on exports.

This ban will further exacerbate the situation in the country. India could expect pressure from several of these countries to ease the ban, but the Centre may not yield to demand as it cannot allow an adverse situation develop for the ruling party during the run up to the next general election.

Five Indian states, Rajasthan, Madhya Pradesh, Chattisgarh, Mizoram and Telangana, are to face Assembly elections shortly and the stakes are high for the ruling BJP. The Opposition is breathing fire now with new vigour injected into it after the Karnataka Assembly elections which saw the Congress return to power in the key Southern state.

The Modi government is also facing problems on several fronts including over the situation in Manipur. Its destabilizing politics and polarization policies have led to unease not only among the political circles but also among the societies by and large. Inflation is also showing up ahead of the election year due to the shortsightedness of the government.

Tomato prices are competing with 'Chandrayaan-3'. Delayed monsoon, heavy rains and flash floods have dwindled the chances of vegetable production across the country too that could have a telling effect on the markets.

Rising India has begun questioning Modi's performance more vigorously of late and he can't afford new issues to crop up for the Opposition to attack him further. The rice export ban has to be viewed in this context.

Whether the export ban now would help the State governments procure the required rice is to be seen. Karnataka which has a Congress government now in place could revive its demand of supply of rice for the free rice scheme it promised to its electorate in view of the ban.

When it sought Centre's nod for buying the rice, the latter refused the supply on the grounds that it had to regulate the market first.

This has forced Karnataka to convert the scheme into a Direct Benefit Transfer scheme offering Rs 34 per kg of rice to the benefiting consumer.

The Modi government has to ensure that the export ban actually benefits our people. As we have always witnessed, prices of commodities only know spiralling upwards and rarely do come down. People get used to higher prices in the hope that they don't escalate further. But it will be a great boon to the already burdened population if the rice prices come down with more availability of the commodity in the local markets.