NEW DELHI- India could consider supplying broken rice to other countries only through diplomatic channels, the Directorate General of Foreign Trade, an arm of the trade ministry, said in an order on Wednesday.
India banned overseas shipments of broken rice and imposed a 20 percent duty on exports of various other grades in September 2022 amid concern over production because of below-average monsoon rainfall in key growing states.
China was the biggest buyer of India’s broken rice, with purchases of 1.1 million tons in 2021. Beijing used to import that variety mainly for feed purposes.
Though India might consider requests for supplies of broken rice to some countries case by case, New Delhi does not plan to lift the ban on broken rice exports, a government source said.
A 90 percent likelihood of an El Nino weather pattern developing during this year’s June-September monsoon season has raised the possibility of less than normal rain in 2023.
Monsoon rains are critical for rice output in India.
India does not plan to lift a ban on broken rice exports and cut a 20% tax on overseas shipments of white rice as the world’s biggest exporter of the grain tries to keep a lid on domestic prices, two government sources said earlier.
New Delhi’s rice export curbs will force buyers, especially in Asia and Africa, to pay more for the staple that has become expensive in the last few weeks.
India banned overseas shipments of broken rice and imposed a 20% duty on exports of various other grades in September 2022 amid concerns over production due to below-average monsoon rainfall in key growing states.
“Rice exports didn’t slow down despite the 20% export duty, and that’s why we believe that there is no reason to reduce or scrap the duty,” said a senior government official, who declined to be named in line with official rules.
India’s rice exports rose 3.5% to a record 22.26 million tonnes in 2022. That was more than the combined shipments of the next four largest exporters: Thailand, Vietnam, Pakistan and the United States.
“We can’t resume broken rice exports just because somebody in China or any other country wants it as a raw material to make ethanol or cattle feed. We’ll rather prefer our domestic industry consuming it,” the official said.China was the biggest buyer of India’s broken rice, with purchases of 1.1 million tonnes in 2021.
India will also extend its rice export curbs due to apprehensions that the El Nino weather phenomenon might hit this year’s monsoon rains.
“We don’t want to take a chance. We’ve limited wheat stocks but ample rice stocks, which we can use if the weather throws any big surprise,” the official said.
