The Indian government has withdrawn concessions given to rice exporters using letters of credit (L/Cs) by announcing the complete prohibition of exports of non-basmati rice to strengthen supplies in the domestic market.

While the government had put a ban on the export of non-basmati rice in October last year, sales under transitional arrangements were allowed for exports agreed in deals with valid irrevocable commercial L/Cs opened prior to the ban.

L/C exports ended

Now, with the latest notification, export of non-basmati rice even against L/Cs is prohibited.

"The government has, with immediate effect, prohibited any export of non-basmati rice under the transitional arrangements," the Directorate General of Foreign Trade said in a statement.

Total ban

Other aspects of the transitional arrangements have also been ended, including the exclusion of superior non-basmati rice from the ban.

The government, under pressure from farmers and exporters, agreed last October to exclude superior rice costing more than US$425 a tonne from the ban.

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