"We have more than sufficient stocks of rice and there is no concern at all in terms of either prices or availability for exports and domestic requirements," said a senior government official involved in the decision making.
"At this stage, there is no consideration at all to prohibit rice exports," said the source, who didn't wish to be named in line with official rules.
The news comes as a huge relief for many importers as India is the world's biggest exporter of the staple. Rice exports from India, also the world's second biggest consumer of the grain, jumped to a record 21.2 million tonnes in the fiscal year to March 2022 from 17.8 million tonnes the previous year.
Earlier this month, India banned wheat exports, just days after New Delhi forecast record shipments of 10 million tonnes this year, as a heat wave hit output and sent domestic prices to record highs.
B.V. Krishna Rao, president of the All India Rice Exporters Association told Reuters that rice prices are falling, even as exports rise, as India has massive stocks and local purchases by the Food Corporation of India (FCI) - the state stockpiler - are increasing
"There is no need to put any restriction on rice exports," Rao said. "Wheat output and prices were affected due to the war in Ukraine, but ... the Black Sea region is neither a major producer nor consumer of rice."
"FCI's procurement is going up, and that is an indication that there's no shortage, so there is no logic for any ban on rice exports," Rao said.
India's rice export prices extended losses this week to touch $350 to $354 a tonne, the lowest in more than five years. In the crop year to June 2022, India's rice output jumped to a record 129.66 million tonnes from 121.1 million tonnes the previous year.
