Which of the following statements is/are correct regarding India's rice export policies and related economic indicators?
1. The Directorate General of Foreign Trade (DGFT) issues export prohibitions under the Essential Commodities Act, 1955.
2. Restricting rice exports is primarily intended to lower the Consumer Price Index (CPI) for food by increasing domestic supply.

Question

Accepted Answer

B) 2 only — Statement 1 is incorrect because the DGFT notifies export policies under the Foreign Trade (Development and Regulation) Act, 1992, while the Essential Commodities Act is used by the government to regulate domestic stock limits. Statement 2 is correct as banning exports increases domestic availability, which helps cool down retail food inflation measured by the CPI.

Reinstatement of Export Ban on Non-Basmati White Rice

India-Sri Lanka-Maldives Conduct Exercise DOSTI 17