India bans export of broken rice, imposes duty of non-Basmati rice export

ANI-

The Indian government on Thursday banned the export of broken rice and imposed a 20 per cent duty on exports of non-Basmati rice amid concerns over low production due to a fall in area under the paddy crop.

The export policy of broken rice has been amended through a notification issued by the Directorate General of Foreign Trade (DGFT) dated September 8, 2022. As per the notification, the export policy for broken rice has been amended from “free” to “prohibited”.

The notification became effective from September 9, 2022.
The government has also imposed 20 per cent duty on exports of non-Basmati rice except for parboiled rice.

The price of broken rice which was around ₹15-16 per kg has been increased to ₹22 and as a result broken rice is neither available for poultry feed nor for ethanol for which they were using broken rice, Sudhanshu Pandey, Secretary, Department of Food and Public Distribution, said at a press conference.

As regards the ban on the exports of broken rice, the government has provided some relief for exporters. As per the DGFT notification, during the period from September 9-15, 2022, the consignments of broken rice will be allowed to be exported: where loading of broken rice on the ship has commenced before the notification.

An abnormal rise in exports and lower availability of broken rice in domestic markets pushed the Central government to put a ban on its trade, said Pandey on Friday. Talking to reporters in New Delhi, Pandey said the price of broken rice which was around ₹15-16 (per kg) increased to ₹22 and its overall exports rose three times. As a result, broken rice was neither available for poultry feed nor for the manufacturing of ethanol. Broken rice is widely used as feed in the poultry sector.

“The contribution of the feed is about 60 per cent as cost on input to the poultry sector. So the prices will get pushed,” Pandey said. India banned the export of broken rice with immediate effect. The export policy has been revised from “free” to “prohibited”.