East Africa to Gain As India Lifts Ban On Rice Exports

World Food Day protest

India's decision to lift the ban on non-basmati rice exports is expected to benefit East African countries, which rely heavily on imports to meet their consumption needs.

The previous export restriction had disrupted global rice supply, affecting these nations.

India announced on Saturday that it would resume exports of non-basmati white rice, with the country's stockpiles swelling and a new harvest due in the coming weeks.

The government also reduced the export duty on parboiled rice to 10 percent from 20 percent in a bid to stabilise the global market.

Kenya, for example, imports over 70 percent of the rice it needs to meet its annual consumption, with demand driven by a growing population. The resumption of exports is seen as a relief for consumers in the region.

However, Kenyan millers have expressed concerns that the government's duty-free import window may lead to a flood of rice imports, which could harm local producers. The lifting of restrictions may intensify competition for local manufacturers.

"The problem is whether Kenya will stop the duty free imports as it is hurting local farmers a lot," said one of the millers.

India, the world's largest rice exporter, imposed the initial ban last year to curb rising domestic prices. This move pushed up inflation in East Africa, exacerbating the region's food security challenges.

The latest decision to ease the ban comes after steps to relax restrictions on premium basmati and parboiled rice.

Huge rice shipments from India could bolster global supplies and push down prices, forcing other major exporters to lower their rates.

India set a minimum export price of $490 per tonne for non-basmati white rice, and recently removed the export tax on white rice, signaling further efforts to support global rice markets.

The reintroduction of non-basmati rice to the international market is expected to enhance global supply levels, benefiting both buyers and sellers.

With India back in the game, other major rice exporters such as Pakistan, Thailand, and Vietnam are likely to face competitive pressure, which could lead to a reduction in global rice prices.

Traders are optimistic that India's decision will ease price volatility, especially in regions like East Africa, where rice is a crucial staple.

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