India exports broken rice to more than 76 nations, China is the biggest consumer of broken rice, and African nations need it for human consumption. China purchases broken rice for animal feed. Due to the fact that shipments of this variety of rice were outlawed on September 8, 2022, the Government of India (GOI) has granted special permission for the export of 3.5 lakh tonnes (lt) of broken rice to Senegal and Gambia.
Broken Rice Export Order
The Commerce Ministry has authorized the export of 1 lakh tonnes of broken rice to Gambia and 2.5 lakh tonnes to Senegal, according to a communication sent by the Finance Ministry to the Chief Commissioners of Customs in Ahmedabad, Chennai, Vizag, Nagpur, and Mumbai. The Ministry has also approved the delivery of 9,990 tonnes of broken rice to Djibouti, Ethiopia.
India’s Broken Rice Exports Policy
After the kharif paddy production was negatively impacted by the lack of a monsoon in important rice-growing regions in the eastern parts, the Central Government banned the export of broken rice and imposed a 20% duty on shipments of white and brown rice.
The estimated amount of rice produced during the kharif season in 2022 was 108.07 million tonnes (mt), down from 111 mt in 2021. The Ministry of Agriculture estimates rabi output at 22.76 mt compared to 18.47 mt last year, making up for the loss.
The Ministry of Agriculture has estimated rice production for the current crop year through June at a record 130.84 million tonnes, up from 129.47 million tonnes in the previous crop year.
Reasons For Export Permits
A segment of the industry is displeased with the Center’s approval of broken rice exports and questions why it was allowed to go to these countries but not other countries. A Delhi-based exporter enquired, “What is the obligation the Government has towards the countries? Why relax a blanket ban imposed on food security grounds?”.
However, a trade analyst reported that the Commerce Ministry granted permission for exports to the Gambia, Senegal, and Djibouti in response to a request from the Ministry of External Affairs.
An anonymous analyst mentioned, “The exports are being allowed for strategic reasons and since the External Affairs Ministry is involved.” The analyst noted that India is clear that it will meet the food needs of “vulnerable countries”, pointing to the Centre’s notifications while preventing wheat exports and restricting rice shipments.
He added that the External Affairs Ministry would have taken into consideration a number of factors prior to approaching the Commerce Ministry.
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