India may consider lifting the ban on rice exports, considering the rice surplus and forecasting a more favorable growing season in the near future.

According to Financial Express, the Indian Government will evaluate rice planting activities next month before making a decision. “As the prospects of the kharif harvest look positive, we need to consider lifting the ban on rice exports,” an official said.

Last month, the India Meteorological Department (IMD) forecast "above normal" rainfall between June and September this year, with a 90% chance of "normal to above normal" rainfall. ". Last year, irregular and below-normal rains affected rice output.

“The surplus of rice coupled with the possibility of more rain than usual bodes positively for the prospect of lifting restrictions on rice exports,” an official said. In March 2024, retail rice prices in India increased by 12.69% over the same period last year, but the price increase is expected to moderate slightly in the next few months due to the effect of a higher base level over the same period. Rice price inflation has been in double digits since October 2022.

The Food Corporation of India (FCI) currently holds more than 53 million tons of rice and grain reserves, of which nearly 32 million tons of rice and more than 21 million tons of cereals. Officials said FCI has received offers to buy 1.5 million tonnes of rice from agencies like Nafed, NCCF and Kendriya Bhandar to sell 'Bharat' rice.

Last year, the Indian Government banned white rice exports and imposed a 20% tax on parboiled rice to improve domestic supply amid rising prices. The government sometimes allows rice exports to meet the food security needs of some countries when required.

Indian Basmati fragrant rice currently has a minimum export price of 950 USD/ton. India has been the world's largest rice exporter since 2012, accounting for more than 40% of the annual global rice trade.

Source: Vietstock