The rating agency Icra in a recent report has said that global rice prices are going to remain high amid the fluctuating economic growth across the globe led by geopolitical crisis in the Middle East and Russia’s invasion of Ukraine.
The average price of exported Basmati rice and non-Basmati rice increased by 26 per cent and 9 per cent, respectively, in FY2023. Further, in 9M FY2024, the average price of exported Basmati rice and non-Basmati rice increased by 10 per cent and 15 per cent, respectively over FY2023 prices.
At present, rice prices are at a decadal high, according to the rating agency.
“Going forward, given the recent export restrictions by the GoI on non-parboiled rice, the introduction of MEP on Basmati rice exports, higher paddy procurement price in the current season and the estimated high foodgrain inflation globally, international rice prices in FY2025 are unlikely to cool down,” it stated.
Although some short-term moderation in domestic rice prices could be witnessed because of the export restriction and the government focus on checking domestic prices of essentials,” it mentioned.
For India, the Icra stated that the export of non-Basmati rice increased to 178 lakh tonne (LT) in FY2023 from 173 lakh tonne in the previous year, despite the government ban on the export of broken rice and an export duty of 20 per cent on other non-Basmati rice from 1 September 2022.
However, the ban on non-parboiled rice exports announced in FY2024 is likely to impact total rice exports. The rating agency estimates the total export volumes of non-Basmati rice would decline by around 35 per cent in FY2024.
However, Basmati rice exports are likely to increase by 13 per cent in FY2024, as farmers may opt for sowing premium rice varieties for higher profits after the government restrictions on non-parboiled rice that would yield lesser profits in the domestic market.
