India allows rice exports against already issued LCs

India said it will allow cargoes of white and brown rice backed by letters of credit issued before September 9 to be shipped overseas, a measure that provides some relief to exporters grappling with fresh government curbs, Reuters reports.

The world’s biggest exporter of rice on September 8 banned exports of broken rice and imposed a 20 per cent duty on exports of various grades as it sought to boost domestic supply and calm local prices after below-average monsoon rainfall curtailed planting.

The surprise move trapped nearly 1 million tonnes of rice at ports or which had been in transit before the government made the announcement.

“It’s a big relief, which we have been asking for the last few weeks,” said BV Krishna Rao, president of the Rice Exporters Association.

Export prices for Indian white rice have risen 12 per cent since September 9, Reuters reports.

The government also said in its notice issued late on Monday that it would allow 6,00,000 tonnes of unmilled rice to be exported to Nepal, which traditionally relies on India to fulfil its food grains requirements.

India accounts for more than 40 per cent of global rice shipments and competes with Thailand, Vietnam, Pakistan and Myanmar.

New Delhi last month allowed 3,97,267 tonnes of broken rice to be exported.