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India to Export Rice to the UAE, 4th Country to Receive Grain following Export Ban

The restrictions on food exports are primarily driven by domestic factors

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Sadaf Hasan
Sadaf Hasan
Aspiring reporter covering trending topics

UNITED ARAB EMIRATES/INDIA: India has granted approval for the export of 75,000 metric tonnes of non-basmati rice to the United Arab Emirates (UAE), marking the fourth country to receive rice shipments after the export ban was enforced in July to control domestic inflation.

As per a government notification issued on Monday, the United Arab Emirates (UAE) will receive rice shipments handled by the National Cooperative Export Ltd., a state-supported entity established in January through a cabinet decision.

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India, the world’s leading rice exporter, imposed an export ban in July to mitigate high cereal inflation, which has remained at double-digit levels. At that time, the government declared that once the external affairs ministry had approved these requests, it would allow rice exports to friendly countries for their food security needs.

Since the implementation of the ban, India has granted permission to export more than 1.4 million metric tonnes of white rice after requests from Singapore, Bhutan, and Mauritius.

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“As a nation alive to global food-security concerns, India will continue to offer rice to friendly countries after evaluating them, provided the exported quantities are used for domestic consumption and not used for trade,” said a food ministry official.

India’s decision to halt exports of its staple rice, where it holds a significant 40% share in global trade, resulted in soaring prices in international markets. In August 2023, the FAO rice price index surged to its highest level in 15 years, with a year-on-year increase of 40.31%.

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Additionally, in response to the export ban, India began exporting broken rice to countries in need. It authorised shipments of 500,000 metric tonnes to Senegal, 200,000 metric tonnes to Indonesia, 100,000 metric tonnes to Mali, and 50,000 metric tonnes to Gambia.

India’s imposition of the export ban on non-basmati white rice in July occurred just three days after Russia withdrew from the Black Sea grain deal, causing concerns about a potential global food shortage. Additionally, the ban on broken rice exports, which was put in place in September of the previous year, remains in effect.

To limit the export of parboiled rice, India has implemented a 20% tariff. In May of the previous year, the nation prohibited the export of wheat, although it is not a significant wheat exporter.

The restrictions on food exports are primarily driven by domestic factors. The government is grappling with high food inflation and concerns about a potential rice shortage due to disruptions caused by the El Nino weather pattern during the upcoming holiday season.

The Modi government is gearing up for a general election next year and state assembly elections in five states this year.

Also Read: High-Stakes Maldives Election Garners Close Scrutiny from India and China

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