India has allowed the export of 600,000 tonnes of unmilled rice to Nepal.

The Indian Government, issuing a notice on Monday, said that it would allow the export to Nepal which traditionally relies on India to fulfill its food grains requirements, Reuters reported.

India said it will allow cargos of white and brown rice backed by letters of credit issued before September 9 to be shipped overseas, a measure that provides some relief to exporters grappling with fresh government curbs.

The world’s biggest exporter of rice on September 8 banned exports of broken rice and imposed a 20 percent duty on exports of various grades as it sought to boost domestic supply and calm local prices after below-average monsoon rainfall curtailed planting, the report added.

The surprise move trapped nearly 1 million tonnes of rice at ports which had been in transit before the Indian government made the announcement.

“It’s a big relief, which we have been asking for the last few weeks," Reuters quoted BV Krishna Rao, president of the Rice Exporters Association as saying.

India accounts for more than 40 percent of global rice shipments and competes with Thailand, Vietnam, Pakistan and Myanmar.

Along with the rise in the middle class and rapid urbanisation, the demand for fine rice, mainly packaged basmati rice, has increased many fold in Nepal since 2010. As Nepal does not grow fine rice or basmati rice in large volumes, this demand is met through imports from India, which have ballooned.