India Lifts Export Ban on Broken Rice:In a significant move, the government of India has granted permission for the export of broken rice to other countries, aimed at meeting their food security requirements. Although the export policy for broken rice remains prohibited, exceptions can now be made based on governmental approval and requests from foreign nations, according to the Directorate General of Foreign Trade (DGFT).
Addressing Global Food Security
Recognizing the importance of supporting global food security, the Indian government has taken steps to allow the export of broken rice, a staple grain, to nations in need. These exports are being facilitated to countries such as Nepal, Indonesia, Senegal, and Gambia, with a combined total shipment of approximately 1.05 million tonnes during the current financial year.
Exports and Allocations
India's Department of Food and Public Distribution has authorized specific allocations for various nations. Nepal is set to receive 300,000 tonnes of wheat, while Indonesia will be granted 200,000 tonnes of broken rice. Senegal will benefit from 500,000 tonnes of broken rice, and Gambia will receive 50,000 tonnes of the same commodity. These allocations have been made following requests from the Ministry of External Affairs, emphasizing the country's commitment to economic diplomacy.
India Lifts Export Ban on Broken Rice
Last year, India imposed a ban on the export of broken rice and introduced a 20% export duty on non-basmati rice varieties (excluding parboiled rice). These measures were implemented to stabilize domestic prices and mitigate concerns over production due to below-average monsoon rainfall in key growing states. As a leading global rice producer, accounting for 40% of world trade, India's export policies play a significant role in the international market.
Export Figures and Market Impact
During the financial year 2022-23, India witnessed a notable increase in the export of non-basmati rice, with a total of 17.79 million tonnes shipped compared to 17.3 million tonnes in the previous year (FY22). However, broken rice exports experienced a 23% decline, amounting to 3 million tonnes, primarily due to the ban on shipments aimed at stabilizing domestic prices.
Promoting Organic Rice Exports
In December 2022, the Indian government took a favorable step by allowing the export of organic non-basmati rice and organic non-basmati broken rice. This decision not only expands India's export potential but also highlights the country's commitment to organic agriculture and sustainable practices in the global marketplace.
The Indian government's decision to permit the export of broken rice, in accordance with requests from other countries for meeting their food security needs, marks a significant shift in policy. By striking a balance between domestic price stability and international trade, India aims to support global food security while harnessing its position as a major player in the rice market. This move paves the way for stronger economic diplomacy and reinforces India's commitment to addressing the nutritional requirements of nations in need.