India Bans Export of Non-basmati White Rice

· Non-basmati White Rice Export Prohibited with Immediate Effect

· Transitional Clauses Para 1.05 evaded and only cargo under loading will be allowed where Shipping Bill is passed and ERO number issued with physical presence of Vessel

The Indian government has prohibited export of non-basmati white rice, a Directorate General of Foreign Trade notification said on Thursday, 20 July, 2023.

"Export policy of non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or glazed)...is amended from free to prohibited," the DGFT said in a notification.

However, it will allow the consignments of this rice to be exported under certain conditions like in cases where loading of this rice on the ship has commenced before this notification.

Earlier, news agency Bloomberg reported the Indian government is considering banning exports of most rice varieties. The ban may affect around 80 per cent of India's rice exports, can reduce rice prices within India but may impact global prices negatively.

Uneven distribution of rainfall in the key rice-growing areas of the country has pushed up prices of the grain by up to 20% in the last 10 days. ET reported earlier.

Prices of rice exported from Vietnam soared to their highest in more than a decade this week, on growing supply concerns due to the El Nino weather pattern and India taking this step, Reuters reported. Traders said information about India's possible move to curb exports also pushed prices higher. Traders expected prices to rise further if India were to limit exports.

Meanwhile, rice planting in India has gained momentum with the revival in monsoon rainfall over the past fortnight.

India - the world's biggest rice exporter - banned overseas shipments of broken rice and imposed a 20% duty on exports of various other grades in September 2022 amid concerns over production.

B.V. Krishna Rao, president of the Rice Exporters Association (REA) said a government move to increase paddy procurement price had been pushing up rates. "But, the government is holding more stocks than needed for welfare schemes. There is no need to restrict exports," he told Reuters.

India rice export prices extended their gaining streak to a seventh week and hit an over 5-year high last week on dwindling supplies after it was reported that the country was considering banning exports of most rice varieties to curb inflation.

[DGFT Notification No. 20 /2023 dated 20 July, 2023]

Effect of this Notification: Export Policy of Non-basmati white rice (Semi-milled or wholly milled rice, whether or not polished or glazed: Other) under HS code 1006 30 90 is amended from 'Free' to 'Prohibited'.

Subject: - Amendment in Export Policy of Non-basmati rice under HS Code 1006 30 90.

S.O. (E) The Central Government, in exercise of powers conferred by Section 3 read with section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2023, hereby amends the Export Policy of Non-basmati rice against ITC (HS) code 1006 30 90 of Chapter 10 of Schedule 2 of the ITC (HS) Export Policy, as under:

ITC HS Codes	Description	Export Policy	Revised Export Policy
1006 30 90	Non-basmati white rice (Semi-milled or wholly milled rice, whether or not polished or glazed: Other)	Free	Prohibited

2. The Notification will come into immediate effect. The provisions as under Para 1.05 of the Foreign Trade Policy, 2023 regarding transitional arrangement shall not be applicable under this Notification for export of Non-basmati rice. Consignments of Non-basmati rice will be allowed to be exported under following conditions:

i. where loading of Non-basmati rice on the ship has commenced before this Notification;

ii. where the shipping bill is filed and vessels have already berthed or arrived and anchored in Indian ports and their rotation number has been allocated before this Notification; The approval of loading in such vessels will be issued only after confirmation by the concerned Port Authorities regarding anchoring/berthing of the ship for loading of Non basmati rice prior to the Notification;

iii. where Non-basmati rice consignment has been handed over to the Customs before this Notification and is registered in their system I where Non-basmati rice consignment has entered the Customs Station for exportation before this Notification and is registered in the electronic systems of the concerned Custodian of the Customs Station with verifiable evidence of date and time stamping of these commodities having entered the Customs Station prior to 20.07.2023. The period of export shall be upto 31.08.2023.

iv. Export will be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their Government.

3. Export of Organic Non-basmati rice will be governed in accordance with Notification No.03/2015-2020 dated 19^th April, 2017 read with Notification No.45/2015-2020 dated 29^th November, 2022.

(Issued from F.No 01 /91/171/010/AM23EC/e- 33294)