India approved the export of 1,000 metric tonnes of non-basmati white rice to Namibia through National Cooperative Exports Ltd.
As of July 20, 2023, exports of non-basmati white rice had been banned to bolster domestic supply. However, the government may grant export permissions to specific countries upon request to help meet their food security needs.
“”Export of 1,000 MTs of non-basmati white rice to Namibia is permitted through NCEL,” the Directorate General of Foreign Trade said.
India’s export of non-basmati white rice was US$122.7 million in April-May and US$852.53 million in the entire 2023-24.
The country had earlier also allowed such exports to countries like Nepal, Cameroon, Cote D’ Ivore, Guinea, Malaysia, Philippines, and Seychelles. NCEL is a multi-state cooperative society. It is jointly promoted by some of the leading cooperative societies in the country, Gujarat Cooperative Milk Marketing Federation, popularly known as Amul, Indian Farmers Fertilizer Cooperative Ltd., Krishak Bharati Cooperative Ltd., and National Agricultural Cooperative Marketing Federation of India Ltd.
Apart from the ban, it was reported earlier this year that demand for India’s Basmati, the long-grain aromatic rice, from traditional buyers in the Middle East, the United States and Europe had dropped as it had become costly. The reason was the escalating tensions in the Red Sea, the shortest and most efficient trade route for ships moving from Asia to Europe.
Attacks by Iranian-backed Houthis from Yemen on commercial vessels passing through the Red Sea forced shippers to avoid one of the world’s most crucial trade routes. The alternative longer route around the Cape of Good Hope on the southern tip of Africa had added more than 3,500 nautical miles (6,500km) to the journey and close to a half-month of sailing time to each trip, significantly increasing shipping costs.
India, the world’s biggest rice exporter, ships more than 4.5 million tonnes of basmati rice out of the country annually. About 35 percent of about 7.5 million tonnes of production is shipped to Europe, North America, North Africa and the Middle East through the Red Sea.