Kathmandu, Oct. 19: India has withdrawn its three-month long ban on rice exports to Nepal. 

In a notice issued by India's Department of Commerce on Wednesday, it is mentioned that India will now export 95,000 tons of rice to Nepal. Such exports will be carried out through the National Co-operative Exports Limited of India.

In mid-July, India announced a ban on the export of non-Basmati white rice. India announced a ban on rice exports in an effort to control rising food prices in their domestic market.

Last year, too, India had banned the export of broken rice and slapped a 20 percent duty on export of husked rice, semi-milled and wholly-milled rice. The three-month long restriction was lifted only in December 2022. 

Nepal imports large quantities of paddy and rice from India. With the announcement of the ban on rice export by India, the price of rice has soared in the Nepali market. 

The Government of Nepal had been repeatedly writing letters, requesting its southern neighbor to lift the export restriction on rice. Nepal had sought permission to import 100,000 tons of rice. In response, India has now agreed to export 95,000 tons of rice to Nepal.

Government records show that Nepal fulfills around 20 percent of its demand for rice through imports. Of around seven million tons of demand, around 1.5 million tons of rice is imported.

India is the world's top exporter of rice, accounting for about 40 percent of the global trade in grains produced. Along with India, Thailand, Vietnam, Pakistan and the USA are other top rice exporters. 

The major buyers of rice are countries like China, the Philippines and Nigeria. India has set quotas for Nepal, Cameroon, Ivory Coast, Malaysia and the Philippines, among others, to sell the farm product.