Broken Rice Export: Ban on export of non-adulterated basmati and broken rice lifted, DGFT takes decision

The central government has lifted restrictions on the export of organic non-adulterated basmati rice (non-adulterated basmati rice), including broken rice, to the domestic market following an increase in arrivals and softening of prices. Earlier, the government had decided to ban it so that there is no shortage of availability at the domestic level. After that, a provision was made to impose a 20 percent duty on the export of non-basmati rice. Its main objective was to ensure supply to the domestic market. A notification issued by the Directorate General of Foreign Trade, DGFT, states that the export of organic non-basmati rice, including organic non-basmati broken rice, will now continue as before the ban imposed in September.

Where is broken rice used?

Broken rice is used in the winemaking industry, ethanol-making industries, poultry, and animal industry. India is the largest producer of rice after China. India accounts for 40% of the global market for chickpeas. Rice exports stood at $5.5 billion from April-September in the current financial year. According to data from the Ministry of Commerce, it was $ 9.7 billion in 2021-22. India exports about 10,000-15,000 tonnes of organic rice (basmati and non-basmati) annually.

With domestic supplies softening, it has now been decided to lift the ban. The ban on exports had assumed significance during September as it appeared that the total area sown to paddy this Kharif season may be less than last year. The government then thought that prices could be affected by the possibility of a lower crop, so rice exports were banned to ensure supply in the domestic market and keep prices in check.

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