“Assurance of Ample Rice Stocks in USA for Indian Diaspora
Indians residing in the US can breathe easy as rice exporters provide assurance regarding the availability of sufficient rice stocks in the country. Consumers, anxious about rice availability, will find relief in knowing that the US currently holds around 12,000 metric tonnes of rice stocks, and an additional 18,000 metric tonnes are en route from India, estimated to last for six months.
Confident in the central government’s forthcoming decision, rice exporters believe it will take into account the needs of the Indian Diaspora. On average, 6,000 metric tonnes of non-basmati rice is exported from India to the USA each month, with Telugu States of Telangana and Andhra Pradesh contributing 4,000 metric tonnes.
However, the recent ban on non-basmati white rice exports from India has resulted in an influx of NRI consumers at rice stores in the USA. People are rushing to purchase rice in bulk, fearing shortages, leading to prices doubling or even reaching $40 (Rs 3,280) for a 9.07 kg bag in some places.
In light of the situation, Kiran Kumar Pola, Director of Deccan Grainz India, a leading rice exporter from Hyderabad, advises NRIs to remain calm while buying rice, emphasizing that ample stocks are available, and the shortage fears will soon pass.
Kiran Kumar also urges the central government to exempt Sona Masoori rice, a favored choice among Indians in the US, from the export ban. He suggests the creation of separate classifications for non-basmati rice, considering the needs of Indians living overseas and implementing better pricing, distribution, and export opportunities.
As a result of the export ban, traders report that export orders for 20 lakh metric tonnes worth Rs 8,200 crore are at risk of immediate cancellation. India, accounting for 40 per cent of global rice exports, faces a monthly export reduction of 5 lakh metric tonnes of non-basmati rice to other countries.
Domestic rice prices have surged by 20-30 per cent in the past three months due to poor harvest in the 2023-24 Rabi season, deficient rainfall in eastern and southern India, and decreased crop cultivation in the Kharif crop due to North’s rains.
Additionally, the 7 per cent increase in the minimum support price (MSP) of paddy has contributed to the rise in prices. To tackle the issue, the central government is restricting exports and boosting domestic supply with the aim of controlling prices.”
