New Delhi: The Indian government has lifted the ban on broken rice exports, which had been in place since September 2022. This marks the removal of the last remaining restriction on rice shipments, a move expected to boost exports and benefit global buyers.
According to a notification from the Directorate General of Foreign Trade (DGFT), broken rice exports have now been placed in the ‘free’ category, allowing unrestricted shipments. The decision is likely to ease pressure on India’s central pool stocks while supporting African nations with lower-priced grain and aiding Asian animal feed and ethanol producers.
At present, the Food Corporation of India (FCI) and other agencies hold 36.9 million tonnes (MT) of rice stocks, excluding 31 MT receivable from millers—significantly higher than the buffer requirement of 13.58 MT for April 1.
In FY24, India exported rice worth $10.41 billion, a 6.5% decline from the previous year due to export restrictions. However, with the lifting of curbs, exports in FY25 are projected to rise by 15%, surpassing a record $12 billion, driven by strong global demand.
The latest move follows the government’s decision in September 2024 to ease restrictions on basmati and non-basmati rice by removing the minimum export price and export duties. This has already contributed to a 22% surge in rice exports during April- January FY25, reaching over $10 billion compared to $8.26 billion in the same period last year.