What you should know about India’s ban on the broken rice export
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India bans broken rice export
With completely banning the export of broken rice, a byproduct of milling rice, India, the world's largest rice exporter, had imposed a 20% export duty on all rice varieties aside from basmati and parboiled rice.
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Reason for the ban
As per the food ministry, total broken rice exports grew over three-fold in 2021-22 which was mostly exported to China for animal feed use. However the increased amount of exports led to a shortage of broken rice in India which is used to make ethanol and as a cattle feed.
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Export of broken rice
According to data from the food ministry, it was difficult for the domestic ethanol and animal feed industries to guarantee the availability of broken rice at reasonable prices. Strong exports caused the price of broken rice to jump from Rs 16 per kg in early January to Rs 22 per kg in early September.
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Poultry and animal husbandry sectors
The poultry and animal husbandry sectors were hit hard due to the hike in feed prices.
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Can the government impose any more restrictions?
Future restrictions will be based on output levels and changes in domestic prices.