2022 have been a strange year in all regards and if you ask this question to exporters and importers of food and agro-commodities, there certainly would be no denying. The chain of events since the start of 2022 provides ample base for the people to believe so.
Early on in the year, the Russian invasion of Ukraine began and the tensions between the two largest grain producers and exporters of the world disrupted the entire supply chain and consequently pushed several nations to the brink of food crisis. The situation was so intense that countries around the world were struggling to procure commodities for their domestic needs, with the poor countries facing the most heat.
Analyzing the situation, countries tried to step up to the occasion and help nations cope up with their food needs. However, adverse weather conditions acted as a hindrance and with low domestic output, they had to restrict exports to prioritize their domestic needs. And, same has been the case with India.
In the aftermath of Russia-Ukraine war, India promised to export record volumes to the world. However, low monsoon rainfall hampered the rice yield and consequently, with a view to ensure ample domestic supplies, India on 9th of September, 2022 imposed a blanket ban on exports of broken rice.
However, analyzing the export data, India exported 24 lakh tonnes of broken rice in the April to September period of FY 2022-23, which is 33% more than the exports of broken rice during the same period last year.
A Look At The Figures
As per the Minister of State for Commerce and Industry, Anupriya Patel, India’s broken rice exports stood at 23.82 lakh tonnes during the April-September period of FY23. Comparing this, with the broken rice exports during the same period last year where the volume stood at 17.86 lakh tonnes, the country has witnessed a 33.37 per cent rise this year.
In a year, where things have been grim particularly for exporters of food and agro-commodities, the quantum rise in exports is of high significance.
Highlighting the significant role that broken rice plays in Indian economy, the minister went on to state that the export volumes have increased by three times from 12.21 lakh tonnes in 2018-19 to 38.90 lakh tonnes in 2021-22 and even in 2022-23 the graph have continued to rise.
Reasons Behind Rise In Exports
Since broken rice is used for production of ethanol and is also used for feeding cattle, it enjoys a high demand round the year and owing to geo-political concerns, India’s broken rice shipments witnessed a sudden rise, the Minister of State for Commerce and Industry, Anupriya Patel cited.
The Bottom Line
India is the largest Rice Exporter in the world and its dominance can be seen from the fact that the country holds a mammoth 40% share in the global rice trade. However, this year due to low monsoon rainfall and heatwaves, the country’s rice output has been low and with a view to ensure domestic supplies the GOI imposed a blanket ban on broken rice exports.
However, a look at the figures reveals that India’s broken rice exports in the FY 2022-23 prior to the ban have witnessed a 33% rise in comparison to last year and analyzing the trend from the previous years this highlights the significance that broken rice holds in India’s economy.
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