Resumption of broken rice exports to ease storage woes

The Director General of Foreign Trade's (DGFT) recent decision to allow the export of broken rice is seen as a vital step in tackling the storage issues plaguing producer states, including Punjab.

- Gurpreet Singh Nibber

CHANDIGARH:

DGFT, the licensing authority for exporters, importers and export and import businesses in India, in a notification on March 7 amended the export policy of broken rice from 'prohibited' to 'free' with immediate effect. The restriction had been in place since September 2022.

The ban led to a buildup of rice stocks and a sharp decline in international prices. Before the ban, India regularly exported 10 to 12 lakh tonnes of broken rice, but with the restriction in place, trade shifted to countries like Vietnam, Thailand and Pakistan.

India's export of broken rice fell drastically in the 2023-24 financial year, down from $1.13 billion in 2021-22 to nearly negligible levels. The international market continues to have strong demand for broken rice and with a surplus of 20% broken rice in India, prices have sharply dropped, affecting the rice industry.