India allows rice exports to PH, six other countries

AFTER imposing an export ban in July, India has allowed exports of non-basmati white rice to seven countries including the Philippines, which has been given the largest allocation of 295,000 metric tons (MT).

In an October 18 notice, India's Directorate General of Foreign Trade announced that exports would be allowed for Nepal (95,000 MT), Cameroon (190,000 MT), the Ivory Coast (142,000 MT), Guinea (142,000 MT), Malaysia (170,000 MT), the Philippines and Seychelles (800 MT).

The shipments will be coursed through India's National Cooperative Exports Ltd.

No other details, particularly the timing of the exports, were provided, but the development is expected to help bring down rice inflation, which was primarily behind a surge in overall inflation last month.

Exports of non-basmati white rice were banned by India on July 20 in an effort to bolster domestic supply. Exports have been allowed to some countries if permitted by the Indian government.

India's export ban triggered high rice export prices to a more than 10-year peak, the United States Department of Agriculture (USDA) has noted.

The USDA, which expects India to account for almost 41 percent of global rice exports by weight in 2023 to 2024, said the ban could remove around 8 percent of expected rice volumes from the global market.

In 2022, India accounted for roughly 40 percent of global rice trade.

The United Nations' Food and Agriculture Organization, for its part, also said that global rice prices reached a 15-year high in August after the export ban.

While global food prices eased in August, those for rice rose by 9.8 percent compared to the previous month, «reflecting trade disruptions in the aftermath of a ban on Indica white rice exports by India.»

Asked to comment on the allocation, Federation of Free Farmers national manager Raul Montemayor said the shipments were not a given.

«In the past, our local importers have not secured rice from India despite significantly lower prices, most probably due to concerns about quality and reliability of supply,» he explained.

Rizal Commercial Banking Corp. chief economist Michael Ricafort, meanwhile, said the resumption of non-basmati rice exports was welcome.

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