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Dip in India’s non-basmati rice exports

Following the government’s move to withdraw 5% incentives from April 1, 2019, India’s non-basmati rice export declined by half between April and May this year. According to data from the Agricultural & Processed Food Products Export Development Authority (APEDA), while India’s overall exports stood at 1.53 million tonnes during April-May 2018, the figures recorded for this year amounted to 711,837 tonnes. In values terms, India’s overall non-basmati rice exports slumped to US$ 294 million in April-May FY 2019-2020 as against US$ 652 million in the corresponding period last year.

Experts have pointed out that an increase in minimum support price over the years has made Indian rice uncompetitive for exports. The fact that Bangladesh, which was the largest importer of India’s non-basmati rice last year, has started growing its own rice, also led to the decline of rice exports by India. Bumper local production also added to the woes due to challenges in storage and handling.