Rice exports to decline by 10% on restrictions from importing Countries
India's rice exports are likely to decline this year by up to 10 per cent this year due to restrictions imposed by importing countries.
While Bangladesh has imposed 28 per cent import duty on rice to restrict its exports largely from India, the European Union also made its quality norms stringent with introduction of new pesticides limit. With this, non-basmati rice export to Bangladesh and basmati rice shipment to the European Union is set to decline.
The restrictions from importing countries assume significance as Bangladesh contributes over 18 per cent India's 8.5 million tonnes of non-basmati rice exports, the European Union shares nearly 10 per cent of India's basmati rice exports annually. A part of this decline, however, is likely to offset with the beginning of direct import from China, possibly in the second half of the current financial year.