In a move that offers some respite to exporters struggling with new government restrictions, India said that it will let the shipment of white and brown rice cargoes supported by letters of credit issued before September 9 to other countries.
The largest rice exporter in the world attempted to increase domestic supply and stabilise local prices on September 8 after planting was hampered by below-average monsoon rains by banning the sale of broken rice and imposing a 20% levy on exports of various grades.
Almost 1 million tonnes of rice were either stuck at ports or in route as a result of the government’s unexpected action.
According to BV Krishna Rao, president of the Rice Exporters, “it’s a great relief, which we have been seeking for the last few weeks.”
Since September 9, Indian white rice export prices have increased by 12%.
In its late-Monday notification, the government also announced that it would permit the sale of 600,000 tonnes of unmilled rice to Nepal, a country that often depends on India to meet its needs for food grains.
India competes with Thailand, Vietnam, Pakistan, and Myanmar for more than 40% of world rice shipments.
Last month, 397,267 tonnes of broken rice were permitted for export by New Delhi.
