MANILA — The recent decision by India to lift its export ban on non-basmati rice is anticipated to alleviate some of the global price pressures on rice, the Department of Agriculture (DA) announced Monday.
According to Philippines News Agency, DA Secretary Francisco Tiu Laurel Jr. expressed optimism that this policy adjustment could lead to a reduction in worldwide rice prices. On September 28, the Indian government set the export floor price of non-basmati white rice at USD 490 per metric ton, a move that DA Assistant Secretary Arnel de Mesa believes will significantly impact global pricing dynamics, particularly since India accounts for 40 percent of the global rice imports. “The lifting of restrictions will free up a significant volume for trade, which was previously constrained by limited supplies from India,” De Mesa noted, pointing out that most global rice supplies traditionally come from Vietnam and Thailand.
De Mesa further explained that the base price for non-basmati white rice being lower than the prevailing international price, which stands at over USD 500 per metric ton, could lead to more relaxed trading conditions and subsequently better global rice prices. This change is expected to ripple through international markets, affecting both pricing and supply chains.
Additionally, Raul Montemayor, national manager of the Federation of Free Farmers, highlighted the broader implications of India’s policy change. He suggested that the resumption of rice exports from India could lead to lower import prices for countries like the Philippines. “India could resume supplying to African and Middle Eastern countries who had temporarily shifted to Asian suppliers during the ban. This reduced demand from these regions could prompt Asian exporters like Thailand and Vietnam to lower their prices to maintain market share,” Montemayor stated.
The lifting of India’s export ban comes after its initial implementation in July 2023 led to significant disruptions in the international rice market, contributing to price surges that saw imported rice prices in the Philippines nearing PHP 60 per kilogram.