India has also lifted the final ban on rice exports. Its purpose is to double the export of agricultural products. In addition, there is a need to promote the country’s economic progress. India is the largest exporter of rice in the world. The pressure on other countries has increased due to the removal of all restrictions on rice exports this month. The prices of white rice imported from Thailand have fallen to $ 405 per tonne. It was $ 669 in January 2024. This decision of the government has come at a time when India wants to increase its agriculture and food exports. This will increase the income of farmers. The country’s economy will get support. Out of India’s 1.4 billion population, more than 42% of people depend on agriculture. Apart from Thailand, India’s competitors in the rice export sector include China and Pakistan. India’s move has reduced rice prices in the international market. This has caused damage to Pakistan. India aims to export agricultural and food products worth $ 100 billion by 2030. According to Commerce Minister Piyush Goyal, it is doubled by exports of $ 48.15 billion in 2023-24.
According to Piyush Goyal, ‘India’s exports last year were around $ 50 billion. But, just as the stomach is hungry for more food, the Ministry of Commerce of any country wants to achieve big achievements. I hope we cross the $ 100 billion mark. The government has also relaxed some restrictions on sugar exports.
Russia-Ukraine War was strictly banned on rice exports
India began to ban rice exports in 2022. India feared lack of rice due to rising prices after the Russia-Ukraine War. Due to these sanctions, people in Asia and North America started buying more rice due to fear. This led to the Asian benchmark rice prices to their highest level after 2008.
India started relaxing export sanctions in September. According to S&P Global, India exported 14 million tonnes of rice in 2023. India can export 21.5 million tonnes of rice between September 2024 to October 2025. This will be a record.
Ashok Gulati, Agricultural Economist of the Indian International Economic Relations Research Council, said, “If India exports more than 20 million tonnes of rice from the global market of 54-55 million tonnes, it will flood the market.”
Pakistan suffered losses
Pakistan has suffered losses due to return to the Indian market. After Pakistan’s withdrawal from the Indian market, it got a place in countries such as Indonesia and East Africa. Ibrahim Shafiq, the export director of Latif Rice Mills in Lahore, said that after India lifted the ban in September, non-basmati rice prices from Pakistan fell from $ 850 per tonne to $ 650 per tonne.
He said, “As soon as India returned to the market, African and Indonesian markets returned to cheap Indian rice.” This has caused loss in Pakistan’s revenue compared to previous years.
The US Department of Agriculture estimates that Pakistan will export 5.8 million tonnes of rice by May. This is a decrease of 11.4% compared to the previous year.
India will again capture the market
Bangalore -based rice economist Samrendu Mohanty said, “When India moved from the market, countries like Pakistan, Vietnam and Thailand captured some parts of the market.” But, once India comes back, no one will be able to compete with India. He further said, “India will get this market back.” This will put all other people out of the African market.
Analysts say that the increase in India’s exports will provide rice to poor African countries at low prices. East Asian animal diet and ethanol growers will also benefit.
Africa is usually a large market for broken rice. According to data from the International Food Policy Research Institute, more than 80% of the broken rice in India’s exports during 2018-20. In 2022, Indian rice will be more than 60% of rice imports from 17 African countries and more than 80% from nine countries including Somalia.
