Ban Paddy Export to Nepal: Bengal Rice Mills Association Appeals to Govt. of India

By M&M Bureau

Bengal Rice Mills Association in a letter to Shri Piyush Goyal, Minister Consumer Affairs, Food and Public Distribution has urged government to curb the paddy export to Nepal. It is to be noted that with an exception to few countries, the government of India has banned all types of rice export. However, duty free export of 6 lac MT of paddy to Nepal has been permitted under Ministry of Finance Notification dt. 31.10.22.
Abdul Malek, Acting President of Bengal Rice Mills Association in the letter to the minister has raised grave concerns about the falling food security in India. According to the association, the continuing paddy export to Nepal will further hurt India’s food security owing to reasons such as:

  • The below average monsoon has delayed paddy sowing that will negatively impact the Kharif harvest in the states of Bengal, Bihar, Jharkhand and Odisha.
  • Poor output in KMS 22-23 has resulted in spiralling prices of this important staple commodity, which has pushed inflation further.
  • Most of the rice mills are facing scarcity of raw material and are incurring heavy losses, due to under-utilisation of their capacities.

The latest media reports have been suggesting that the government of Nepal has requested the Indian government to increase this quota from 6 lac M.T to 10 lac M.T.

The Bengal Rice Mills Association opines that ongoing paddy export to Nepal will be disastrous for the agro-based economy of our country. They suggested that the food security concerns of the neighbouring country can be taken care of by allowing duty free exports of white rice, which will be mutually benefitting to both the countries.

The paddy exports will also result in loss of 70000m.t of valuable rice bran . This eventually will be be detrimental to the growth of solvent and cattle feed industry too . It will cause substantial loss to the government exchequer in terms of taxes .

India’s edible oil import bill rose by 34% to 1.57 lakh crore in the oil year ending November 22 as per industry body SEA.
Hence the exports will further add to the burden .
In light of the above concerns the rice mill association requested Hon’ble minister to rethink on the decision of allowing paddy exports to Nepal
Apart from Bengal rice mills association , many individuals rice mills and state associations have requested the ministry to impose ban on paddy exports .

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