The ban on 100 per cent broken rice in India, which had been in place since September 2022, was lifted by the government on Friday. In a late evening notification, the Directorate-General of Foreign Trade announced that exports of broken rice will now be allowed, as opposed to being prohibited previously.
The decision to lift the ban comes as India’s rice storages are overflowing and the exporting industry has been advocating for this change. Prior to the ban, African nations, particularly Senegal, as well as China and Vietnam, were significant buyers of the broken grain.
Industry sources had been expecting this development for nearly a week. However, with tough competition from Vietnam and Pakistan, India will have to work on finding buyers. Vietnam is currently offering 100 per cent broken white rice at $307 a tonne free-on-board, while Pakistan’s quote stands at $308. Thailand’s price for the same variety is $356 a tonne, which means India may have to offer at a higher price than its competitors.
The opening up of Indian 100 per cent broken rice exports is expected to add pressure to the rice market, which is already experiencing low prices. Global production and ending stocks are on the rise, while demand remains weak and prices are at 2-year lows. Additionally, the arrival of new crops in Asia is further impacting prices.
Overall, the decision to lift the ban on 100 per cent broken rice exports in India is expected to have significant implications on the rice market, both domestically and globally.
