Daily Current Affairs : 21-July-2023
In recent times, the Indian government took a significant step by imposing a ban on the export of non-basmati white rice with immediate effect. The decision was aimed at bolstering the domestic supply of rice and controlling inflation. This essay delves into the reasons behind the ban, the role of India in global rice trade, and the potential implications of the decision.
The Need for Banning Non-Basmati White Rice Export
- Soaring Domestic Prices of Rice
Over the past year, the retail prices of rice in India have been on a relentless upward trajectory, surging by 11.5 percent. Even in the past month, prices have escalated by 3 percent. This rapid increase in prices has raised concerns over food security and affordability for millions of households.
- Decrease in Rice Stocks
As of July 1, the estimated rice stocks in the central pool stood at around 48.65 million tonnes. This figure reflects a decrease of almost 13 percent compared to the same period last year. With shrinking reserves, ensuring an adequate supply of rice to meet the domestic demand becomes a pressing issue.
- High International Prices and Global Circumstances
The surge in rice exports from India can be attributed to several factors such as geopolitical scenarios, El Nino sentiments, and extreme climatic conditions affecting rice production in other countries. These factors have led to high international prices, making Indian rice a lucrative option for international buyers.
Understanding Non-Basmati White Rice Exports
- Significance of Non-Basmati White Rice in India’s Exports
Non-basmati white rice holds a substantial share, accounting for approximately 25-30 percent of India’s total rice exports. In the financial year 2022-23, the total exports of non-basmati white rice reached $4.2 million, a significant increase from $2.62 million in the preceding year.
- Major Export Destinations
India’s non-basmati white rice finds its way to various destinations across the globe. Some of the major importers of this variety include Thailand, Italy, Spain, Sri Lanka, and the USA. The expansion of export volume has been impressive, with 6.5 million tonnes exported in FY23, indicating a remarkable rise of nearly 22 percent from the previous financial year.
India’s Role in Global Rice Trade
- Dominance in Rice Exports
India plays a crucial role in the global rice trade, accounting for over 40 percent of the world’s rice exports. Its rice shipment in 2022 surpassed the combined exports of the next four leading exporters, namely Thailand, Vietnam, Pakistan, and the US.
- Diverse Export Markets
India’s presence in the rice market extends to more than 140 countries worldwide. The country exported a total of 17.86 million tonnes of non-basmati rice in 2022, with a significant share of 10.3 million tonnes being non-basmati white rice.
Important Points:
- The Indian government banned the export of non-basmati white rice to boost domestic supply and control inflation due to increasing domestic rice prices.
- Rice stocks in the central pool were estimated to be 13 percent lower than the previous year, leading to concerns about food security.
- High international prices, geopolitical factors, El Nino, and extreme climatic conditions in other rice-producing countries drove the sharp increase in rice exports from India.
- Non-basmati white rice accounted for 25-30 percent of India’s total rice exports, with a significant rise in export volume in the financial year 2022-23.
- Major destinations for India’s non-basmati white rice exports included Thailand, Italy, Spain, Sri Lanka, and the USA.
- India plays a critical role in global rice trade, contributing over 40 percent of the world’s rice exports, surpassing the combined exports of Thailand, Vietnam, Pakistan, and the US.
- India exported 17.86 million tonnes of non-basmati rice in 2022, with 10.3 million tonnes being non-basmati white rice, indicating a strong presence in diverse international markets.
Why In News
Recently, in a bid to address the decreasing rice cultivation area, the Centre also introduced subsidies for farmers to encourage higher paddy production during the upcoming harvest season.Additionally, this ban on non-basmati white rice export is expected to stabilize prices in the domestic market, ensuring food security for the nation and alleviating the economic burden on consumers.
MCQs about India’s Ban on Non-Basmati Rice Exports
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Why did the Indian government ban the export of non-basmati white rice?
A. To boost domestic supply and control inflation
B. To increase revenue from rice exports
C. To promote basmati rice exports
D. To comply with international trade regulations
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What is the significance of non-basmati white rice in India’s rice exports?
A. It accounts for 10% of India’s total rice exports
B. It constitutes 40% of India’s total rice exports
C. It makes up 25-30% of India’s total rice exports
D. It contributes 50% of India’s total rice exports
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What factors contributed to the surge in rice exports from India?
A. Decrease in domestic rice prices
B. High international prices, geopolitical scenarios, and extreme climatic conditions in other rice-producing countries
C. Expansion of basmati rice production
D. Decrease in demand for rice in international markets
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What role does India play in the global rice trade?
A. India accounts for 20% of the world’s rice exports
B. India is the largest rice importer in the world
C. India contributes over 40% of the world’s rice exports
D. India primarily exports basmati rice to international markets
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