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India’s Rice Export Ban Shock Global Markets

India is the world’s second-largest producer of rice, and the largest exporter of rice in the world. According to preliminary estimates, India’s rice export during FY23 summed up to $11.14 billion, encompassing both basmati rice export ($5 billion) and non-basmati rice export ($6.14 billion).

India’s recent ban on non-basmati rice export  has sent waves worldwide, particularly affecting Asia and Africa. In a recent announcement from the commerce ministry, India has additionally placed restrictions on exporting basmati rice contracts valued below $1200 per tonne.

What happened?

India, the largest exporter of rice in the world, recently stopped exporting non-basmati rice on July 20. The decision was made to control rising food prices within the country and make sure there’s enough rice available at reasonable costs for its own citizens. India contributes more than 40 to the global rice trade.

Why non-basmati rice export ban matters

This export ban on non-basmati rice is expected to affect millions of people, with the most significant impact felt by consumers in Asia and Africa. Countries like Malaysia and Singapore heavily rely on Indian rice imports. The ban is a response to the high demand for rice within India itself.

Who’s affected with rice export ban

Countries like Malaysia and Singapore are particularly vulnerable due to their substantial reliance on Indian rice imports. The rice export ban could also lead to higher global rice prices, affecting places like the Philippines where rice is a major part of the cost of living calculation. However, much of Southeast Asia’s rice imports come from Vietnam, helping to buffer the impact.

Potential consequences of ban on rice export

Rice prices are already at their highest in a decade, with factors like El Nino affecting production in other major rice-producing countries like Thailand, Pakistan, and Vietnam. If other significant rice-exporting countries impose their own export restrictions, and major rice-importing nations start stockpiling, it could create chaos in the rice market, potentially even worse than a similar situation in 2007.

India’s stance on non-basmati rice export ban

The ban on non-basmati rice exports isn’t new for India. However, this time, it’s expected to have a wider-reaching impact. It’s unlikely the ban will be lifted soon, possibly staying in place until India’s general elections in April of the following year. This decision is a response to India’s own internal inflation and political considerations.

Potential future impact of rice export ban

Inflation is rising in India due to increased food prices. If rice shipments decrease, it could have a global effect on prices, even affecting commodities like wheat, which can be a substitute for rice. Unpredictable weather events could further strain crop production, adding to potential price increases.

Current rules in Basmati rice exports

The Indian govt. imposes restrictions on basmati rice export below $1200/tonne in order to prevent potential “unauthorized” shipments of non-basmati rice disguised as basmati rice.

“It has been noticed that despite restrictions on certain varieties, rice exports have been high during the current year. Upto 17th August 2023, total exports of rice (other than broken rice, export of which is prohibited) were 7.33 MMT compared to 6.37 MMT during the corresponding period of previous year, registering an increase of 15.06 per cent,” the commerce ministry said.

Conclusion

India’s rice export ban is causing a disruption in global rice markets, impacting not only rice prices but also the economies of various nations, particularly those heavily reliant on Indian rice imports. The situation could continue to develop, leading to potential consequences for global food prices and trade.

A Guide to Pulses and the Different Types of Pulses

In India, pulses are so central to the diet that it’s difficult to envision a dinner (especially for vegetarians) without them. Indian cuisine relies heavily on pulses, which are used in snacks, curries and even some sweet dishes. Different types of pulses are used in a wide variety of cuisines, from the Middle Eastern dip hummus to the traditional English morning staple baked beans. 

Pulses are commonly referred to as “Dals.” They are high in protein and other nutrients, and they come from the legume family. Pulses are the dried, roasted, and seasoned seeds of legume plants. Pulses are found in a wide range of pod sizes, pod colors, and pod shapes. 

To distinguish them from other vegetable crops that are taken while still green, the term “pulses” is restricted to those harvested entirely as dry grains.

The blog focuses on what are pulses, what are the different types of pulse and export of pulses. Continue reading for more. 

What are Pulses?

The word “pulse” means “seed or grain that can be made into a thick soup or pottage” in its Latin origin. Although both soybeans and peanuts are legumes, they are more commonly classified as oilseeds than as pulses due to their distinctive characteristics and primary uses. 

Pulses are a group of dry legumes that includes several popular foods.  They are members of the legume family, but the term “pulse” is used to describe only those that are cultivated for their edible dry seeds. Lentils, chickpeas, split peas, beans like kidney beans, and navy beans are all examples of pulses.

They are hardy plants that contain amino acids and are rich in protein, fiber, and numerous vitamins. The rest of the world is starting to catch on to the fact that these foods are great for you, even though they are most prevalent in underdeveloped nations.

List of Pulses Grown and Consumed all Over the World

Here are 10 varieties of pulses and lentils available in the market. Below is the list of these pulses:

  1. Red lentils (Masoor dal)
  2. Black chana (Kale chane)
  3. Bengal gram (Chana dal)
  4. Chickpeas (Kabuli chana)
  5. Black gram (Urad dal)
  6. White lentils (White Urad dal)
  7. Pigeon peas (Tur dal)
  8. Green pigeon peas (Hare tuvar dal)
  9. Green gram (Moong dal)
  10. Horse gram (Kulthi dal)

Exploring Different Types of Pulses: A Closer Look

Red Lentils (Masoor Dal)

Red lentils, also known as Masoor dal, are a popular ingredient in Indian soups, curries, and side dishes. Masoor Dal has a lot of protein, fiber, folate, and iron. They are also low in fat and contain a reasonable amount of carbohydrates. These are grown mostly in India, Canada, and Turkey.

Black Chickpeas (Kale Chane)

Black chickpeas are used in a variety of Indian and Middle Eastern recipes, including curries, salads, and snacks. Kale chane or black chickpeas are rich in protein, fiber, iron, and a variety of vitamins and minerals. They are prominent in regional cuisines due to their unique flavor and adaptability. These are mostly produced in India and other Asian countries.

Bengal Gram (Chana Dal)

Bengal gram, also known as Chana dal, is a kind of lentil that is commonly used in Indian cookery to prepare dal meals, snacks, and sweets. It is high in protein, fiber, and important minerals including iron and manganese. Traditional Indian foods are made with this particular pulses such as chana dal curry and chana dal halwa. The majority of chana dal is cultivated in India, Pakistan, and portions of the Middle East.

Chickpeas (Kabuli Chana)

Chickpeas, also known as Kabuli chana, are used in a variety of dishes across the world, including hummus, curries, salads and more. Protein, fiber, and folate levels are all high in Chickpeas. These are popular because of their adaptability in both savory and sweet cuisines. Grown mostly in the Mediterranean area, the Middle East, India, and portions of the Americas.

Black Gram (Urad Dal)

Black gram, also known as Urad dal, is used in Indian cuisines such as punjabi dish dal makhani, idli, and dosa batter. Rich in protein, dietary fiber, iron, and other vital elements. It adds a creamy smoothness to meals and is useful for fermenting batters. Mostly grown in India, Pakistan, and other regions of Asia.

White Lentils (White Urad Dal)

White lentils, also known as White Urad Dal, are used in many Indian cuisines in the same way as black gramme is. Protein, fiber, and nutrient-rich, similar to black gramme. It is used in meals that require a gentler flavor and color. Mostly cultivated in India and neighboring countries.

Pigeon Peas (Tur Dal)

Tur dal, or pigeon peas, are one of the most popular dal in Indian cooking and are used to cook dal dishes. It is packed with protein, dietary fiber, vitamins, and minerals, often used in traditional Indian cuisine. It is grown in India, Africa, and the Caribbean.

Green Pigeon Peas (Hare Tuvar Dal)

Green pigeon peas, also known as Hare tuvar dal, are used in curries and stews in the same way as mature pigeon peas are. These are high in protein and fiber. Mostly grown in India and other tropical areas.

Green Gram (Moong Dal) 

Green gram, also known as Moong dal, is used in Indian and Asian cuisines to produce dal dishes, soups, and sweets. It is a good source of protein, dietary fiber, vitamins, and minerals. Small, green seeds that may be used whole or split; they are light and simple to digest, making them excellent for a variety of cuisines. They are cultivated in India, Southeast Asia, and other tropical regions.

Horse Gram (Kulthi Dal)

In South Indian cuisine, horse gram, or Kulthi dal, is used to prepare substantial curries and soups. These provide a lot of protein, fiber, and iron. They are mostly grown in India, particularly in desert areas.

Pulses Exports from India

During the 2022-23 fiscal year, India exported 775,024.48 MTS of pulses worth Rs 5,397.86 Crores/ 672.31 USD Millions.

Bangladesh, China, United Arab Emirates, the United States, and Nepal are the major export destinations for the period of 2022-23.

On account of soaring demand for chickpea and lentils from China, the United Arab Emirates (UAE), and Bangladesh, India’s exports of pulses will likely set a new record for the fiscal year.

During April to January of the current fiscal year, pulses exports increased by 80 percent in volume to 5.39 lakh tonnes (lt).

More Facts and Figures on Pulses export from India –

  • According to Volza’s India Export data, exports of Pulses from India totaled 47,000 units, exported by 3,395 India exporters to 7,060 buyers.
  • India exports the majority of its Pulses to the United States, the United Arab Emirates, and Canada, and is the world’s third-largest exporter of Pulses.
  • The top three exporters of Pulses are Vietnam (87,500 shipments), China (65,640 shipments), and India (47,049 shipments).

Conclusion

Pulses are an irreplaceable aspect of the vegetarian diet. They are colorful and nourishing. In addition, you can easily enjoy them daily. Some of the most popular dals available in the market are Masoor daal, urad dal, Kala and kabuli chana, an etc. Eat them regularly to give your health a much-needed boost.

Pulses are a delicious and nutritious food that can be enjoyed by people of all ages. They are a good source of protein, fiber, vitamins, and minerals, and they are a sustainable food source. If you are looking for a healthy and flavorful way to add more protein to your diet, pulses are a great option.

FAQs

Difference between legumes and pulses?

Legumes are characterized by their ability to fix nitrogen in the soil through a symbiotic relationship with nitrogen-fixing bacteria in their root nodules. Unlike fresh legumes that can be consumed as vegetables, pulses are dried and need to be rehydrated and cooked before consumption. 

Are pulses the same as legumes?

All pulses are legumes, but not all legumes are pulses. Legumes encompass a broader category of plants that includes both fresh and dried seeds, while pulses specifically refer to the dried seeds obtained from legume plants.

Which legumes are not pulses?

Some dried legume seeds, such as peanuts and soybeans, are oil seeds, so they are not considered pulses.

Unveiling the World of Rice Exports from India: Everything You Need to Know

It is a known fact that India is the world’s second-largest producer of rice, and the largest exporter of rice in the world. According to preliminary estimates, India shipped $11.14 billion in rice during FY23, including basmati ($5 billion) and non-basmati ($6.14 billion).

The demand usually comes from Asian, African and European countries. With each upcoming and new harvest, the demand of rice exports from India is spiking to new heights every day.

But “How” did it all start?

Apart from being a staple food that was consumed by Indians and other countries, the actual production and profit-based trade of rice started in the Colonial Period. Under the Zamindari System, rice became a commercial product with a demanding market in British colonies and markets.

The Green Revolution began in India in the 1960s with the aim of improving food production. 

The adoption of modern techniques, including the cultivation of high-yielding rice varieties, the implementation of efficient irrigation systems, and the utilization of fertilizers and pesticides, has greatly contributed to a substantial rise in India’s rice production.

In the 1990s, the government put out rules and policies for foreign trade. It also gave farmers and exporters a variety of incentives, financial and trading help, and made the whole process less complicated.

Rice Production in India and Current Market Trends

A lot of mixed interpretations are being done by analysts regarding the situation of India in the rice export market for the year 2024. A certain decline is expected due to heavy export duty on the overall Non-Basmati variety. These might motivate the competitors like Vietnam, Thailand or Pakistan to rise up to the occasion and take the title of “Lead Exporter” of rice from India.

In recent times, increased demand for Indian rice from the North American and European regions, as well as favorable climatic circumstances, have backed the rise of the Indian rice export. The timely onset of rainfall is a primary  driver of high rise affairs. 

This also leads to more advanced productivity than in other Asian nations  similar to Thailand and Indonesia, where erratic downfall causes cataracts and failure. West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Haryana, Tamil Nadu, Odisha, and Bihar are the top states for rice production in India.

Basmati Rice Exports from India

Basmati is one the premium varieties of rice that is grown in Himalayan region in the Indian subcontinent. It has a distinct exquisite flavour and is quite often referred to as “Biryani wale Chawal” among the Indian cuisine. What makes it so in demand is the soft, non-sticky fluffy texture with its own aroma and in turn increasing Basmati rice export from India. Basmati is found in various types: 1509, 1121, 1401, PUSA (D.B.), 1718, and so on.

The country has exported 3,948,161.03 MT of Basmati Rice to the world for the worth of Rs. 26,416.49 Crores/ 3,540.40 US$ Mill.) during the year 2021-22.

Non-Basmati Rice Exports from India

Non-Basmati rice comes in all kinds; short, long, slender, beads, round, etc. Out of 10,000 varieties of Non-Basmati Rice, maximum are produced in India due to the rich geographical factors. The major export destinations for Non-Basmati rice export from India are countries like Nepal, Africa, Senegal, Bangladesh.

India is home to different types of Non-basmati rice varieties. These include Matta, Chinigura, Ponni, Idly, Sona masoori, PR-11, IR-64, Jaya, Surti Kolam, Jeerakshala, etc.

The country has exported 17,262,235.10 MT of Non-Basmati Rice to the world for the worth of Rs. 45,652.36 Crores/ 6,124.27 USD Millions during the year 2021-22.

The Trail of Rice Exports in Last 10 Years

The last decade has seen a complete evolution and change in the rice-exporting industry. The graph has witnessed both highs and lows. A few of them are highlighted here.

2013: India emerges as a global leader in the rice export industry.

2014-2015: India faces a decline in rice export business due to intense competition and a decrease in international prices.

2016-2017: Export-promoting councils are established and policies implemented to bolster rice exports, leading to a resurgence in India’s trade activities.

2018: The Indian government introduces stricter measures for quality and quantity of rice to maintain its reputation in the international market.

2019: Despite challenges, including geographical factors and strict regulations imposed by other countries, India continues to thrive in rice exports.

COVID-19 Pandemic: Imports and exports worldwide come to a halt due to the pandemic.

Post COVID-19: The demand for rice increases globally as countries combat food scarcity caused by the pandemic. Now, the demand for rice remains steady with minimal fluctuations.

Major Rice Exporting Countries

While India holds a prominent position in the rice export market, it is important to note that several other countries are also performing well in this industry. Among the top global rice exporting nations, excluding India, are the following:

Thailand

Thailand, known for its production of “Jasmine Rice” is a major exporter in the global rice market. In the past year, Thailand has exported around 21.9 million tonnes in the international market. The main destinations of rice exports from Thailand are: USA, South Africa, Benin and Hong Kong . Thailand serves Iraq, China and Cote d’Ivoire majorly.

Vietnam 

White rice from Vietnam is an important food source as well as a key export crop for Vietnam. On average, Vietnam produces 40-46 million tonnes of white rice per year; in addition to domestic consumption, Vietnam white rice exports 25-28 million tonnes per year.

Pakistan

More than 60 of the rice produced in Pakistan is exported to foreign countries.

China

China is one the biggest exporter as well as importer of rice. In the past few years, China has imported a huge fraction of Indian rice.

Practice Adopted to Boost Rice Exports from India

In order to promote the continuous and lead supply of rice in the world, the Indian Government is undergoing thorough policy-revision. There’s a likely possibility that grain shipment restrictions will be lifted. Any situation of relaxing the export curb will cool off the benchmark prices. 

Other policies measures in favor are: 

  • Minimum Support Price – The farmer is given a minimum support price for their produce bought for export. This protects the farmer from exploitation plus makes a continuous supplier of rice.
  • Schemes on Export Promotion – A series of schemes are introduced and implemented by the Government that provides financial incentive, assistance to exporters and businessmen plus provide subsidies, as required. 
  • Trade Facilitation – In order for a seamless export procedure, the government has simplified the whole process by reducing trade barriers, diversifying markets, participation in trade fairs, expanding storage facilities and more.

Rice Supplier in India

India’s current rice production capacity not only satisfies the domestic demand but also facilitates substantial exports to international markets. This ability to meet both domestic and global requirements showcases the efficiency and scale of India’s rice industry. Combined, all of India’s rice exporters, including companies like EXPORA, have enough capacity to meet domestic demand and ship substantial quantities abroad.

However, finding dependable rice export companies in India who produce high-quality rice for import-export purposes can be a major difficulty in the global rice industry. Due to reasons such as a lack of knowledge, multiple supplier challenges, language hurdles, physical distance, and differences in business practices, locating such reliable rice suppliers in India can be challenging.

At EXPORA, we understand the importance of working closely with a network of trusted rice suppliers and manufacturers from all over India. As a leading rice export company in India, we guarantee a consistent supply of different rice varieties to cater to the diverse preferences of our customers worldwide. With our expertise and strong partnerships with reputable rice suppliers in India, we ensure reliable and top-notch rice exports from the country.

Conclusion

Indian rice exports have played a pivotal role in shaping the global rice trade. With its abundant production capacity, diverse range of rice varieties, and robust infrastructure, India has emerged as a key player in meeting both domestic demand and international markets. As India continues to strengthen its agricultural practices and explore new markets, its rice exports are poised to contribute significantly to the world’s food security while fostering economic growth.