HomeNewsNational Agri NewsPutting People First: India's Rice Policy Benefits Farmers and Consumers

Putting People First: India’s Rice Policy Benefits Farmers and Consumers

In a significant move, the Government of India has taken measures to ensure an abundant supply of Non-Basmati White Rice in the domestic market while curbing the surge in prices. By amending the Export Policy of this variety from ‘Free with export duty of 20%’ to ‘Prohibited‘ with immediate effect, the government aims to stabilize rice prices and benefit both farmers and consumers.


Over the past year, the retail prices of Rice have surged by 11.5%, and in the last month alone, they have increased by 3%. To address this concern and make rice affordable for all, the government has undertaken a significant policy change.

Despite the imposition of export duty, the export of Non-Basmati White Rice has risen sharply. From September 2021 to March 2022, exports stood at 33.66 LMT (Lakh Metric Tonnes), but during the same period in 2022-23, it surged to 42.12 LMT. The current financial year (2023-24) has witnessed a further 35% increase, with 15.54 LMT exported from April to June compared to 11.55 LMT in 2022-23.

Important Points

  1. Government Update: Effective immediately, the Export Policy for Non-Basmati White Rice has been changed from ‘Free with export duty of 20%’ to ‘Prohibited’.
  2. Rising Prices: Domestic rice prices have increased by 11.5% over the past year and 3% in the last month, creating concerns over affordability.
  3. Export Duty Implementation: In an effort to control prices and maintain a steady supply of Non-Basmati White Rice in the domestic market, an export duty of 20% was imposed on this variety on 8th September 2022.
  4. Factors Behind Export Surge: The surge in exports can be attributed to international market dynamics, including geopolitical scenarios, El Nino influences, and extreme weather conditions in other rice-producing countries, leading to high international prices.
  5. Impact on Consumers: Non-Basmati White Rice constitutes approximately 25% of India’s total rice exports. Prohibiting its export will help lower prices in the domestic market, benefiting consumers and ensuring food affordability for all.
  6. Farmer-Friendly Policy: While the export policy for Non-Basmati White Rice has changed, there is no alteration in the Export policy of Non-Basmati Rice     (Par Boiled Rice) and Basmati Rice, which constitute the majority of India’s rice exports. This measure ensures that farmers will continue to receive remunerative prices in the international market.


The government’s proactive approach aims to balance the interests of farmers and consumers, fostering food security and stability in the Indian rice market. As farmers, you can continue to thrive with remunerative prices for other rice varieties while consumers can relish the goodness of affordable Non-Basmati White Rice. This initiative reflects the government’s commitment to the welfare of farmers and the well-being of every Indian household.

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