An anonymous government official said on Wednesday that India is thinking about letting the departure of certain rice cargoes that are stalled at ports after the world’s largest exporter of the commodity imposed restrictions earlier this month.
After planting was hampered by below-average monsoon rains, India banned the export of broken rice and slapped a 20% levy on a number of other export kinds on September 8 in an effort to increase local supplies and stabilise prices.
A million tonnes of grain were held at ports as a result of India’s decision to restrict rice exports.
Since New Delhi banned exports of this grade, Indian exporters have asked the government for authorization to ship 100% broken rice that is heaped at ports.
Since customers are unwilling to pay the additional cost, exporters have also asked the government for permission to transport white rice inventories that are waiting at ports without the 20% export tax.
In answer to a query regarding the requests made by merchants to the government, the source stated, “We are looking into it.”
According to industry experts speaking to media this week, at least 20 ships are stuck at the ports waiting to load roughly 600,000 tonnes of rice, requiring merchants to pay demurrage fees.
Despite contracts being supported by letters of credit, another 400,000 tonnes of rice are held in port warehouses and container freight stations, an industry leader claimed.
While buyers in Benin, Sri Lanka, Turkey, and the United Arab Emirates purchased different grades of white rice, the blocked broken rice shipments were going to China, Senegal, and Djibouti.
India’s rice exports may decrease by almost 25% this year as purchasers switch to other suppliers as a result of New Delhi’s limitations.
The output of summer-sown rice in India is anticipated to decrease by 6% in the 2022–23 crop year, according to the Ministry of Agriculture & Farmers’ Welfare, as patchy monsoon rains in the country’s east have a negative impact on planting and crop yields.
Featured Image: vijaykarnataka.com
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