India agrees to make an exception for Singapore and allow the export of rice to fulfil its food security requirements

Recently, the Indian government implemented a temporary embargo on exporting consignments of basmati rice priced at less than $1,200 per tonne to foreign markets. However, an exception is now being made for Singapore to cater to its food security needs in light of the close strategic partnership between the two countries.

India’s External Affairs Ministry spokesperson, Arindam Bagchi, highlighted the nations’ robust relationship characterized by shared interests, strong economic ties, and substantial people-to-people connections. He announced that, considering this unique bond, India has decided to permit rice exports to meet Singapore’s food security requirements. Formal directives to this effect will be issued soon, according to Bagchi’s response to media inquiries.

The spokesperson emphasized that formal orders would follow shortly. The Indian government initially imposed the export ban on basmati rice consignments priced under $1,200 per tonne on August 27. However, shipments of rice that were already contracted above this price threshold will be allowed for export.

To bolster domestic supply and curb retail price hikes, India had earlier suspended non-basmati white rice exports on July 20. Around 25 percent of India’s rice exports comprise non-basmati white rice. The government swiftly revised the export policy from “Free with export duty of 20%” to “Prohibited” to ensure consistent availability of non-basmati white rice in the domestic market and counteract local price surges.

In September 2022, a 20 percent export duty was enforced on non-basmati white rice by the Indian government to stabilize prices and ensure its sufficient supply within the country.

Following the imposition of the non-basmati white rice export ban, the Singapore Food Agency (SFA) engaged with Indian authorities to seek an exemption from this restriction. The SFA conveyed its intention to collaborate with importers to enhance rice imports from various sources and expressed its dialogue with Indian authorities to secure an exemption from the ban.