The central government on Thursday banned exports of non-basmati white rice to boost domestic supply and keep retail prices under check during the upcoming festive season.

Since India is the world’s biggest rice exporter, the ban could send already lofty global prices of the food staple higher.

There would be no change in the export policy of par-boiled non-basmati rice and basmati rice, which form the bulk of exports, the food ministry said in a statement.

“The domestic prices of rice are on an increasing trend. The retail prices have increased by 11.5 per cent over a year and 3 per cent over the past month,” the statement said.

An export duty of 20 per cent on non-basmati white rice was imposed on September 8, 2022, to lower the price as well as ensure availability in the domestic market. However, the export of this variety increased to 42.12 lakh tonnes in the September-March period of 2022-23 from 33.66 lakh tonnes during the same period of the previous fiscal.

In the first quarter of the current fiscal, about 15.54 lakh tonnes of white rice was exported against only 11.55 lakh tonnes in the year-ago period, which means an increase of 35 per cent.

“This sharp increase in exports can be ascribed to high international prices due to geopolitical scenario, El Nino sentiments and extreme climatic conditions in other rice-producing countries, etc.,” the statement said.

The prohibition on the export of non-basmati white rice will lead to a lowering of prices for the consumers in the country.

Non-basmati white rice constitutes about 25 per cent of total rice exported from the country. The total exports of non-basmati white rice from India was $4.2 million in 2022-23 as against $2.62 million in the preceding year. Major destinations of India’s non-basmati white rice exports include Thailand, Italy, Spain, Sri Lanka and the USA.

“Export policy of non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or glazed)... is amended from free to prohibited,” the directorate general of foreign trade (DGFT) said in a notification.