India has banned the export of non-basmati white rice with immediate effect, according to a notification released by the Directorate General of Foreign Trade on July 20.
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Register NowIndia, which is the largest exporter of rice in the world, exported 17.8 million mt of non-Basmati rice in 2022-23 (April-March) and out of which 6.4 million mt was white rice, according to the commerce ministry data.
The notification, however, added that white rice exports will be allowed with permission granted by the government to other countries to meet their food security needs and based on the request of their government.
An exporter said that domestic ex-mill prices could fall to Rupee 27/kg from the current prices of Rupee 32/kg and parboiled ex-mill prices could test Rupee 34/kg.
Local prices will fall drastically for white rice at least Rupee 2/kg, a source said.
Meanwhile, export prices of parboiled rice may go up by at least $10/mt, another source added.
Platts, part of S&P Global Commodity Insights, assessed Parboiled 5% STX at $440/mt FOB on July 20.
Sources said that prices can't go too high.
"Demand will go up, so FOB price will go up too, but it can't go too high as consumers will switch to Pakistan, Thailand, Vietnam or Myanmar origin instead," a trader said.
"They [the Indian government] have basically taken out all exports to Vietnam and East Africa etc. Parboiled exports to West Africa will very well continue which is a good percentage of overall Indian non-Basmati exports," an exporter said.
The notification also added that India will allow exports of non-Basmati white rice that was being loaded before the release of the notification or if the shipping bill is filled and vessels have already berthed or arrived and anchored in Indian ports.