NAMIBIA—India has authorized the export of 1,000 tonnes of non-basmati white rice to Namibia through the National Cooperative Exports Limited (NCEL).
This decision, announced by the Directorate General of Foreign Trade (DGFT), comes despite a broader export ban on non-basmati white rice, which has been in place since July 20, 2023, to address domestic supply concerns.
The government has granted permission for this export to Namibia based on specific requests to meet food security needs.
This move is part of a larger pattern of selective export allowances to various countries, including Nepal, Cameroon, Cote d’Ivoire, Guinea, Malaysia, the Philippines, and Seychelles.
NCEL, a prominent multi-state cooperative society, facilitates these transactions and includes key cooperative entities such as the Gujarat Cooperative Milk Marketing Federation (GCMMF), Indian Farmers Fertilizer Cooperative Ltd (IFFCO), Krishak Bharati Cooperative Ltd (KRIBHCO), and the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED).
In addition to the export of non-basmati white rice, India is considering adjustments to its rice export policies.
Government sources indicate that India may soon lower basmati rice’s minimum export price (MEP) from US$950 to US$800-US$850 per metric ton to bolster shipments amid high rice inventories.
This adjustment aims to retain market share against Pakistan, which has seen increased exports due to India’s restrictive measures.
India and Pakistan are the leading exporters of basmati rice. New Delhi exports more than 4 million metric tons of basmati – the premium long-grain variety famed for its aroma – to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States
Furthermore, India is expected to replace the current 20% export tax on parboiled rice with a fixed duty to address issues related to under-invoicing.
These changes come as India’s rice stocks have surged to a record 48.51 million metric tons as of July 1, 2024—nearly 19% higher than the previous year.
The decision to adjust rice export policies reflects a response to the high domestic inventory levels and the potential impact of the El Niño weather pattern on future production.
“With rice supplies significantly exceeding local demand, it’s crucial to reduce stockpiles to prevent spoilage. The most effective solution is to lift export restrictions,” said B.V. Krishna Rao, president of the Rice Exporters Association (REA).
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