In a significant move for Indian farmers, Agriculture Minister Shivraj Singh Chouhan announced on January 1 that Indonesia will import 10 lakh metric tonnes of non-basmati white rice from India. The agreement is expected to ensure better rates for farmers and boost India's agricultural exports.
India, the world's largest rice exporter, had imposed a ban on non-basmati white rice exports in July 2023 to stabilize domestic prices. The ban was lifted in September 2024 with the introduction of a minimum export price (MEP), which was later removed in October. These decisions reflect India's strong buffer stock and stable retail rice prices. In 2023-24, India exported $852.52 million worth of non-basmati white rice to over 140 countries, with key importers from Africa, South Asia, and the Middle East.
Additionally, the agriculture sector in India is projected to grow by 3.5-4% in FY25, a significant improvement from 1.4% growth in FY24. This positive outlook is supported by higher sowing of key kharif crops, adequate buffer stocks, and favorable conditions for the rabi season, as noted in the Reserve Bank of India’s December bulletin.
The Indian Cabinet also approved additional subsidies on di-ammonium phosphate (DAP) fertilizer and enhanced allocations for the PM Fasal Bima Yojana on January 1. These decisions aim to support farmers and strengthen the agricultural sector.