India has officially lifted its export ban on 100% broken rice, effective March 7, 2025, after nearly two and a half years of restrictions. The decision follows a significant increase in rice stockpiles, which reached a record 67.6 million metric tons in February, far exceeding the government’s target of 7.6 million tons.
Background of the Export Ban
The initial ban on 100% broken rice exports was implemented in September 2022 due to concerns over insufficient rainfall impacting production. In 2023, the Indian government extended restrictions to other rice grades to ensure domestic food security. However, a record harvest in the following seasons improved the supply situation, leading to a gradual easing of these export curbs. The latest move marks the complete removal of restrictions on 100% broken rice.
Implications of the Policy Change
The resumption of broken rice exports is expected to have a significant impact on multiple sectors and global markets:
- Increased Access for African Nations
Many African countries, including Senegal and Djibouti, depend on broken rice as a staple food due to its affordability. The lifting of the ban will enable these nations to secure their rice supplies more efficiently.
- Boost for Animal Feed and Ethanol Industries
Asian industries that utilize broken rice for animal feed and ethanol production will benefit from improved availability. This could help stabilize input costs for businesses that rely on this resource.
Market Outlook
Indian exporters project that approximately 2 million tons of 100% broken rice will be shipped in 2025. This is a decline from the 3.9 million metric tons exported in 2022 before the ban was introduced. Currently, Indian broken rice is priced at around $330 per metric ton, slightly above rates from competitors such as Vietnam, Myanmar, and Pakistan. However, as stockpiles from these competing nations decline, India is expected to regain its position as a key supplier in the global market.
Conclusion
With the lifting of restrictions, India is set to play a crucial role in stabilizing the international rice trade. The move is expected to benefit importing nations and industries while ensuring a balanced approach to domestic supply and demand. As global buyers look to secure their rice needs, India’s re-entry into the broken rice export market will be closely watched by stakeholders across the agricultural and trade sectors.
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