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Why India banned export of broken rice & could more curbs be in the offing -Sayantan Bera

-ThePrint.in

High exports driven by demand from China led to shortage in country, where broken rice is used to make ethanol & as cattle feed. Lower & delayed planting likely to hit production too.

New Delhi: On 8 September, India, the world’s largest exporter of rice, announced export curbs to tame spiralling retail prices. The move was anticipated because lower and delayed planting, in the face of deficit rainfall, are estimated to hit production.

The Modi government had in May imposed a ban on wheat shipments after a heatwave led to a lower harvest.

India accounts for a 40 per cent share in the global rice trade of around 50 million tonnes. ThePrint takes a close look at why export restrictions have been imposed on certain varieties of rice.

Export curbs announced so far

India has imposed a 20 per cent duty on export of all varieties of rice, except basmati and parboiled rice, with effect from 9 September. In addition, it has imposed a complete ban on export of broken rice, which is a by-product of the milling process.

Together, basmati (4 million tonnes) and parboiled rice (7.4 million tonnes) accounted for 54 per cent of India’s total rice exports of 21.2 million tonnes in 2021-22. The rest, about 10 million tonnes of rice exports from India, including broken and raw rice, and about a fifth of the global trade in rice, has been restricted so far.

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