India bans export of broken rice starting today

After imposing 20 percent duty on export of non-basmati rice, India has banned fresh overseas shipment of broken rice with effect from today with an aim to increase domestic availability. 

According to Reuters, India exports rice to over 150 nations, and any reduction in its shipments will increase pressure on food prices, which are already rising because of drought, heat-waves and Russia's invasion of Ukraine.

India, the world's second-largest rice producer after China, commands a 40 percent share in the global trade of the commodity. 

According to a government notification, the "export policy of broken rice ...is amended from Free' to Prohibited'," the Directorate General of Foreign Trade (DGFT) said in a notification dated September 8, 2022.

However, the ban order provisions under the Foreign Trade Policy 2015-2020 will not apply to the export of broken rice which are already approved.

The notification also said that during the period September 9-15, certain consignments of broken rice will be allowed to be exported.

Consignments will be allowed for exports during this period (Sept 9-15) in cases where loading of broken rice on ships commenced before the issuance of the September 8 notification, where the shipping bill was filed and vessels have already berthed or arrived and anchored on Indian ports and their rotation number has been allocated before this order.

Exports will also be allowed in case the consignment has been handed over to the Customs before this notification and is registered in their system, it said.

The approval for loading in such vessels will be issued only after confirmation by the port authorities concerned regarding anchoring/berthing of the ship for loading of broken rice prior to the notification.

A large chunk of India's broken rice is exported to China where it is used as fodder.

The Indian government on Thursday imposed a 20 percent export duty on non-basmati rice except for parboiled rice to boost domestic supplies amid a fall in area under the paddy crop in the current Kharif season.

According to a notification by the revenue department, an export duty of 20 per cent has been imposed on 'rice in husk (paddy or rough)' and 'husked (brown) rice'. The export duty comes into effect from September 9.

The area under the paddy crop in India has been down by 5.62 per cent at 383.99 lakh hectare in the ongoing Kharif season so far due to poor rains in some states including West Bengal, as per the latest data released by the Agriculture Ministry.

The country exported non-basmati rice to more than 150 countries in 2021-22.

India's rice production rose to a record 130.29 million tonnes in the last crop year against 124.37 million tonne in 2020-21.

In May this year, India restricted exports of wheat.