The Indian government has approved the export of 1 million tonne of non-basmati rice to Indonesia, a decision made in the Cabinet Committee on Economic Affairs (CCEA) meeting on January 1, 2025. Under this arrangement, the National Cooperative Export Limited (NCEL) will handle the export, and the rice will be procured from the open market instead of the central government’s buffer stock. This decision comes after a ban on non-basmati white rice exports, imposed in July 2023, was lifted in September 2024 with a minimum export price (MEP) of $490 per tonne, followed by a complete lift of restrictions in October.

This move will provide support to Indonesia, which is experiencing a decline in its rice production due to delayed harvests caused by prolonged dry weather. Indonesia’s rice production in 2024 is projected to drop by 2.43%, and the country is seeking to import up to 1 million tonne of rice from India to address the supply shortfall. This agreement reflects India’s strong position as the world’s largest rice exporter, following a bumper Kharif harvest in 2024-25, which is expected to hit a record 119.9million tonne, up from 113.2million tonne the previous year.

The deal is expected to enhance India’s agricultural export market, providing a boost to rice trade and helping maintain global rice prices, which had fallen by over 10% after India lifted the export ban. However, prices have stabilized since November. (Source:Eng RuralVoice)

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