India has issued a government order permitting traders to export their cargoes of non-basmati white rice, which had been stuck at ports due to an unexpected ban on its exports. The ban, introduced on July 20, halted the overseas shipments of widely consumed non-basmati white rice in an effort to control rising domestic prices. This move left thousands of tonnes of rice stranded at ports and traders facing financial losses.
The Directorate General of Foreign Trade (DGFT), a division of the trade ministry, has now taken a decision to allow the shipment of these trapped cargoes. However, traders must ensure that the export duty is paid by the ban’s effective date. Prior to the ban, exports of this particular type of rice attracted a 20% tax.
As a result of the recent DGFT order, approximately 150,000 tonnes of non-basmati white rice cargoes are expected to be exported from various ports. This decision is not only beneficial for Indian suppliers, but it also aids consumers in needier countries, particularly in East African and West African nations, where most of the trapped cargoes are destined to go.
