NRIs In USA Panic For Rice Export Ban From India.

 




India ranks first in rice exports in the world market. India accounts for 40% of total rice exports. India exports rice to most of the countries including USA, Europe. Recently on 20th July 2023, Government of India imposed a ban on the export of non-basmati rice. As a result, NRIs in the USA are panicking. And they are flocking to grocery stores to stock up on rice.

         Due to erratic weather conditions the move is said to have been taken by the Indian government to curb the increase in domestic rice supply and prices due to a decline in rice production in India. There are currently over 40 lakh Indian expatriates in the USA. The staple food of those who are more fortunate is rice, Idle etc. which are made from rice. Sona masuri rice is also in high demand in most cities in the USA. Due to this ban, NRIs in the USA rush to buy rice at various grocery stores. Shop owners have also increased the price of rice on the occasion. Earlier where a bag of rice of 20 pounds (9.00 K.G.) was priced at $18-$24 dollars, but now a bag of 20 pounds is selling at double the price of $40 dollars. As a result, the NRIs in the United States are in a state of panic. NRIs should exercise restraint and calmness in purchasing rise. USA has sufficient rice reserves for NRIs. Fearing shortage, they are spending more on rice which is quite worrying. An Indian buyer said they were hit by the rice crisis and price hike during Covid-19. So currently buying rice in advance and storing it. Some USA merchant have relaxed a condition that a customer can only buy one bag of rice. In addition, and other countries and cities, this situation has arisen.

                 The Indian Government had previously banned wheat and sugar exports to curb domestic prices and crisis. Last year, the Indian government also banned exports of broken rise, and imposed a 20% duty on exports of non-basmati rice. But it was withdrawn in November. At present, the ban on the export of non-basmati rice has created panic again.

      According to some exporters, there in no need to worry about rice for NRIs in the USA. There is sufficient stock of rice. They said the USA has 12,000 MT of rice in stock, and another 18,000 MT of rice is being transported from India. About 6,000 MT of non-basmati rice is exported to the USA every month from India. They estimate that this stockpile of rice is enough for at least six months. They said the ban has been imposed only on the export of non-basmati rice, there is no ban on fragrant basmati rice. And they also appealed to the government to take appropriate decisions keeping in mind the NRIs in the US. And they hope the Indian government will lift the ban within six months.

           Kiran Kumar Pola, director of Hyderabad-based leading rice exporter Daycan Gaines India, has urged the government to keep sonamasuri rice out of the ban as Indians living in the USA mainly consume sonamasuri rice. He also said that if the central government has a separate classification for non-basmati varieties, both farmers and consumers will benefit. The government should keep in mind the needs of overseas Indians and address their concerns. Also if the central government can regulate the classification of rice varieties then it will be more fruitful.

After the central government imposed an export ban on non-basmati rice on 20 July, 2023, traders say their orders for 20 lakh MT oof rice worth around Rs 8,200 crore are likely to be cancelled. For this, rice exporters will face many problems. Low rabi crop production in 2023-24 and low kharif crop and cultivation due to scattered rains and rainfall deficit in south India and high rainfall in north India, and domestic rice prices are currently rising due to EL-Nino weather forecast. Considering these aspects, the government of India has taken decision to curb domestic rice price hike.



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