The Indian government has granted approval for the export of 30,000 tonnes of non-basmati white rice to Tanzania and 80,000 tonnes of broken rice to Djibouti and Guinea Bissau. This decision, communicated by the Directorate General of Foreign Trade (DGFT) via a notification, comes despite the ban on non-basmati white rice exports since July 20, 2023, to boost domestic supply. However, exports are permitted on a case-by-case basis to certain nations upon request, aimed at fulfilling their food security needs.
Tanzania, an East African nation, and Djibouti, situated on the northeast coast of Africa, along with Guinea-Bissau, a tropical country in West Africa, will receive these shipments. Additionally, Djibouti will receive 30,000 tonnes of broken rice, while Guinea Bissau will receive 50,000 tonnes, as per the notification.
Furthermore, India has also authorized similar exports to Nepal, Cameroon, Cote D’ Ivore, Guinea, Malaysia, Philippines, and Seychelles. These exports are facilitated through the National Cooperative Exports Limited (NCEL), a multi-state cooperative society jointly promoted by prominent cooperative societies in the country.
In a related development, India has permitted the export of 64,000 tonnes of onions to the UAE and Bangladesh through the NCEL, according to notifications from the commerce ministry. While Bangladesh is allocated 50,000 tonnes, the UAE will receive 14,400 tonnes of onions. The DGFT has specified a quarterly quantity ceiling of 3,600 MT for onion exports to the UAE.
The commerce ministry, through the DGFT, manages the norms related to imports and exports. It has outlined that the modalities for onion exports to Bangladesh will be determined by the NCEL in consultation with the department of consumer affairs. Despite the ban on onion exports, India permits specified quantities to friendly nations based on their requests.
The government’s actions aim to balance domestic availability and price stability. Recent measures include the ban on onion exports until March 31, 2023, and the sale of buffer onion stock at a subsidized rate of Rs 25 per kg. Additionally, minimum export prices and export duties were imposed earlier to regulate onion prices.
Between April 1, 2023, and August 4, 2023, India exported 9.75 lakh tonnes of onions, with Bangladesh, Malaysia, and the UAE being the top importing countries in terms of value. Onion, being a politically-sensitive commodity, requires careful management to address both domestic and international demands.