Rice exports could fall by 4-5 million tonnes after ban on broken rice, 20% duty

Exporters said India’s rice exports could fall by 4-5 million tonnes (MT) this fiscal due to the ban on broken rice as well as export duty on non-Basmati rice, excluding parboiled grains.

India, which accounts for 40% of global rice trade, exported 21.23 MT of rice in FY 2021-22 as against 17.78 MT last year. Before the COVID-19 outbreak, exports were 9.51 million tonnes in FY 2019-20.

During the April-August period of the current fiscal year, government data shows that the country has already exported 9.35 million tonnes as against 8.36 million tonnes in the previous period.

Vijay Setia, former president of the All India Rice Exporters Association (AIREA), told PTI, “Exports have been at 16-17 million tonnes this fiscal due to the ban on broken rice and 20 per cent export duty. will.”

He said that the country is exporting non-basmati rice at $380-400 per ton, which is lower than the rate of shipment from other countries.

Price recovery is “expected to improve in line with our competitors” following these decisions, Mr Setia said.   On Friday, Food Secretary Sudhanshu Pandey explained the rationale behind the ban on exports of broken rice.

Mr Pandey had said there was an “absolutely phenomenal” increase in shipments of broken rice and broken grains for animal feed and ethanol blending programs were not available in sufficient quantities.

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