Even as rice prices have risen 11% year-on-year in July, the government has taken several steps in last few months to cool inflation in the key food grain.
The price of Indian rice exports has jumped 9% to a five-year high, following a hike of 7% last month in the price the government pays farmers for new-season common rice.
PB 1121 Basmati rice has become prone to diseases, leading to increased use of chemicals by farmers. But high level of fungicide residue has led EU importers to reject consignments.
Following requests, India would allow exports to Indonesia, Senegal and Gambia in 2023-24. It also approved request from Nepal and allowed exports in current financial year.
On 8 Sept, India banned exports of broken rice & imposed a 20% duty on exports of various grades as it sought to boost domestic supply & calm local prices.
The recent curbs on rice exports could end a decade of price stability as the govt's protectionist move coincides with falling output in other major producers & rising global demand.
High exports driven by demand from China led to shortage in country, where broken rice is used to make ethanol & as cattle feed. Lower & delayed planting likely to hit production too.
Finance ministry says the proposed revamp will focus on structural reforms, rate rationalisation & ease of living, & will be deliberated upon in the coming weeks.
The project is meant to be a ‘protective shield that will keep expanding’, the PM said. It is on the lines of the ‘Golden Dome’ announced by Trump, it is learnt.
Standing up to America is usually not a personal risk for a leader in India. Any suggestions of foreign pressure unites India behind who they see as leading them in that fight.
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