Center Urgent Action Needed: Government Bans Broken Rice Export Due to Abnormal Increase in Price and Demand

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The Indian government has prohibited the export of broken rice due to a spike in its price, a shortage in domestic supply, and an “abnormal” surge in exports. This decision follows the imposition of a 20% export duty on all non-basmati rice excluding par-boiled rice.

According to Food Secretary Sudhanshu Pandey, broken rice exports have skyrocketed to 21.31 lakh metric tonnes (LMT) from April-August 2022, a massive increase compared to 0.51 LMT during the same period in 2019. He described this surge as abnormal, pointing out that China was the top buyer of Indian broken rice in 2021-22.

Pandey noted that the price of broken rice has surged from Rs 15-16 per kg on January 1 to Rs 22 per kg on September 8. The share of broken rice in total rice exports has risen to 22.78% during April-August 2022, up from 1.34% in 2019, with China being a major buyer.

The government has amended the export policy of broken rice from “Free” to “Prohibited,” effective September 9. Exceptions have been made for consignments already in transit or in customs control before the notification.

Pandey also mentioned the imposition of a 20% export duty on non-basmati rice to lower domestic prices. He warned of a potential 10-12 million tonne shortfall in rice production this year due to various factors impacting the current kharif season.

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