Two days ago, the Indian government imposed a temporary ban on exporting any type of basmati rice consignment sold for less than $1,200 per tonne overseas. However, a recent development reveals that India has decided to create a special case for Singapore. Under this arrangement, India will permit the export of rice to meet the food security needs of the South East Asian nation.

“India and Singapore enjoy a very close strategic partnership, characterised by shared interests, close economic ties and strong people-to-people connect. In view of this special relationship, India has decided to allow the export of rice to meet the food security requirements of Singapore. Formal orders in this regard will be issued shortly,” said India's External Affairs Ministry spokesperson Arindam Bagchi, while responding to media queries on the export of rice to Singapore.

As per reports, the Ministry of External Affairs (MEA) spokesperson announced that formal orders concerning this matter would be issued by the government in the near future. This announcement follows a recent decision by the government on August 27 to impose a temporary export ban on basmati rice consignments sold for less than $1,200 per tonne overseas.

However, rice shipments that have secured contracts exceeding this price threshold will be permitted for export.

On July 20, the Indian government implemented a ban on the export of non-basmati white rice, constituting 25% of India's total rice exports. This move aimed to enhance domestic supply and regulate retail prices. The government swiftly adjusted the export policy from 'Free with export duty of 20%' to 'Prohibited' to ensure a steady availability of non-basmati white rice in the Indian market and counter the surge in local prices.

In a separate development on September 8, 2022, the government imposed a 20% export duty on non-basmati white rice to lower its price and guarantee its presence in the domestic market.

Subsequent to the ban on non-basmati white rice exports, the Singapore Food Agency (SFA) initiated communication with Indian authorities, seeking an exemption from the ban. According to a statement by the SFA, Singapore is actively collaborating with importers to enhance the import of diverse rice varieties from multiple sources. The statement also indicated that Singapore is maintaining close contact with Indian authorities in its pursuit of an exemption from the export ban.

Image source: TOI