India’s restriction on exporting non-basmati white rice might remain in effect until at least November, owing to concerns about the potential impact of El Nino on the sowing of kharif crops, according to an informed government source.
The official, who requested anonymity, explained, “Given the various predictions regarding El Nino’s potential influence on Kharif crops, the government has chosen to be cautious. By taking preemptive measures, the government aims to be prepared for any impact that El Nino might have.”
Any reconsideration of lifting the export ban would only come after the conclusion of the sowing season for Kharif crops. This would enable the government to evaluate the current year’s crop yield. The official emphasized that the decision to revoke the ban would hinge on the performance of the monsoon crops.
The rationale behind New Delhi’s decision to maintain the export ban on certain types of rice until at least November encompasses not only the management of domestic prices but also the assurance of an ample supply of the grain, the official added. Retail prices of rice had surged by 10.63 percent year-on-year as of August 7, while in the wholesale market, there had been an 11.12 percent increase during the same period.
In addition to the restrictions imposed on specific rice exports starting from July 20, the Indian government has been actively involved in the Open Market Sale Scheme (OMSS) to mitigate the rise in prices of essential commodities. To enhance the response in auctions, the government has lowered the reserve price of rice.
