(MENAFN- KNN India) New Delhi, May
13 (KNN) In light of the substantial surplus of rice Stocks and the forecast of an 'above normal' monsoon that is likely to boost paddy sowing in the upcoming kharif season, the Indian government is considering the possibility of lifting the restrictions on rice exports that were imposed last year.
According to sources familiar with the matter, the government will assess the sowing progress of the kharif paddy crop, expected to commence next month, before making a final decision on removing the curbs on rice shipments, reported FE.
An official stated, "We need to look at lifting restrictions on rice shipments as kharif crop prospects look bright."
The sowing of kharif paddy, which accounts for 80 per cent of India's total rice output, typically takes place in the June-July period, following the onset of the monsoon across the country.
Last month, the India Meteorological Department (IMD) predicted 'above normal' rainfall during the June-September period, with a 90 per cent chance of the rains being in the "normal-to-excess" range.
This favourable monsoon forecast contrasts with the patchy and below-normal precipitation experienced last year, which adversely affected rice production.
Officials cite the surplus stocks and the prospects of bountiful monsoon rains as positive indicators for lifting restrictions on rice exports.
While retail prices of rice rose by 12.69 per cent year-on-year in March, the price rise is expected to soften in the coming months due to a higher base effect.
However, the inflation in rice prices has been in double digits since October 2022.
The rice stocks held by the Food Corporation of India (FCI) are currently close to four times the buffer required for July 1, despite a 7 per cent fall in procurement during the current season compared to the same period last season.
FCI currently holds 53.19 million tonnes (MT) of rice and grain receivable from millers, against the buffer requirement of 13.54 MT for July 1.
Last year, the government had initially banned white rice exports and subsequently imposed a 20 per cent shipment duty on parboiled rice to improve domestic supplies as price increases remained in double digits.
However, the government periodically allowed rice exports to meet the food security needs of certain countries based on their requests.
(KNN Bureau)
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