With rice export being free of control, the total export of agricultural products is expected to improve.
13-Nov-2024 06:28 PM
The Indian government’s decision to free the export of whole category Basmati and non-Basmati rice from all controls and restrictions is expected to significantly boost the country’s agricultural export performance.
By removing these barriers, India is likely to see a substantial increase in rice exports, which is anticipated to play a major role in helping the country surpass the $50 billion mark in agricultural export income for the financial year 2024-25.
In the previous year, India's agricultural export income had been negatively impacted by restrictions on the export of non-Basmati white rice, wheat, and sugar, leading to a decline of about $6-7 billion.
Although the ban on wheat and sugar remains in place, the lifting of restrictions on white rice, including duty-free export of Sela rice, is expected to substantially enhance export figures.
The total rice export from India is projected to rise from 140-150 lakh tons in the previous financial year to 170-180 lakh tons in the current year.
The U.S. Department of Agriculture even estimates it could reach 215 lakh tons, which would provide a significant boost to India's agricultural export performance.
Among the key rice export figures, Basmati rice exports are expected to reach 55 lakh tons, while non-Basmati Sela rice exports could be between 70-80 lakh tons.
Additionally, about 40 lakh tons of white rice are expected to be shipped abroad. In addition to rice, exports of other agricultural products such as fruits, vegetables, meat, processed foods, and their derivatives have also been showing strong growth.
Looking ahead, the Indian government has set a bold target to increase agricultural exports to $100 billion by 2030. Achieving this goal will require sustained growth in rice exports, alongside continued support for other agricultural commodities.
However, despite the optimistic export outlook for rice, the ban on wheat and sugar exports will likely remain in place until conditions are more favorable.
Overall, the lifting of rice export restrictions is a key step in revitalizing India’s agricultural export sector, and if current trends continue, it is expected to lead to a significant improvement in the country's trade balance for agricultural products.