India bans export of broken rice to increase domestic supplies

The Ministry of Commerce and Industry announced a ban on the exports of broken rice on Thursday. In a notification dated September 8, the ministry has prohibited exports with effect from September 9.

The ministry has also listed conditions under which the consignments of broken rice would be allowed for a period of one week starting Friday.

The government has also imposed 20 percent export duty on non-basmati rice effective from September 9. Unmilled and husked brown rice will be subject to a 20 percent export duty. Semi-milled or totally milled rice, other than parboiled and basmati rice, will also be subject to the 20 percent tariff.

The government has excluded parboiled and basmati rice from the export duty, which will come into effect from September 9.

India — world's biggest exporter of rice — is implementing strategies to augment supplies and calm local prices after below-average monsoon rainfall curtailed planting. The loss of rice production this year is estimated to be 10 to 12 MT.  Total rice sowing fell by 38.06 LHa this year, with many areas seeing deficient rainfall.

India exports rice to more than 150 countries, and any reduction in its shipments would increase upward pressure on food prices, which are already rising because of drought, heat-waves and Russia's invasion of Ukraine.

The share of broken rice in export has grow from 1.34 percent in 2019 to 23 percent in 2022. Broken rice was catering to need for ethanol production as need wasn't met from sugar based stocks. As of 21 August, 26.64 crore litres ethanol was produced from FCI rice in 2021-22, up from none in 2019-20.

Parboiled rice used for human consumption and basmati rice have been exempted from export restriction and duty. The export of parboiled rice has doubled from last year.

The share of broken rice in export has grow from 1.34 percent in 2019 to 23 percent in 2022. Broken rice was catering to need for ethanol production as need wasn't met from sugar based stocks. As of 21 August, 26.64 crore litres ethanol was produced from FCI rice in 2021-22, up from none in 2019-20.

Parboiled rice used for human consumption and basmati rice have been exempted from export restriction and duty. The export of parboiled rice has doubled from last year.

With Agency inputs