India allows broken rice exports

Despite the ongoing ban on exporting broken rice, the Central government has granted permission for broken rice export to meet the food security requirements of other countries.

broken rice

Image Credit: Pixabay

The government has granted the permit for the export of broken rice to cater to the food security requirements of other countries, despite the prevailing ban on broken rice exports.

As part of its economic diplomacy, India will dispatch around 1.05 million tonnes (MT) of foodgrains from which 300,000 tonnes of wheat will be exported to Nepal, 200,000 tonnes of broken rice to Indonesia, 500,000 tonnes of broken rice have been allocated for Senegal, and 50,000 tonnes of broken rice intended for Gambia within the first six months of the current financial year. This initiative aims to strengthen India’s economic ties and engage in fruitful diplomatic exchanges with these countries.

Last year, in September, India implemented a ban on the exports of broken rice and imposed a 20% export duty on non-basmati rice varieties, except for parboiled rice. This measure was taken to regulate prices due to concerns over production, particularly with below-average monsoon rainfall in major rice-growing states.

India holds the position of being the world’s second-largest rice producer, after China, and accounts for 40% of the global rice trade.

During the financial year 2022-23, India witnessed an increase in non-basmati rice exports, with 17.79 million tonnes (MT) shipped compared to 17.3 MT in the previous fiscal year (FY22). However, broken rice exports experienced a decline of 23% Y-oY, amounting to 3 MT, as a result of the export ban imposed to stabilize domestic prices.

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