Centre bans export of broken rice due to domestic demand

Source: The post is based on the article “Centre bans export of broken rice due to domestic demand” published in The Hindu on 10th September 2022.

What is the News?

The Government of India has banned the export of broken rice in view of the domestic demand and production scenario of rice.

What is Broken Rice?

Broken rice are fragments of rice grains, broken in the field during drying, transport or during milling.

This rice is mostly used as animal feed and as a component for ethanol production.

Why has the export of broken rice been banned?

The export of broken rice had increased by 4178% during the months between April 2022 and August 2022 compared to the same months of 2019. The export is mainly to China, Senegal, Vietnam, Djibouti and Indonesia. 

Due to this: a) There was low availability of broken rice for ethanol production and b) The Domestic price of broken rice increased. The poultry sector and animal husbandry farmers were impacted the most due to price hikes as about 60-65% of inputs cost for poultry feed comes from broken rice and any increase in prices will be reflected in poultry products like milk, egg, meat etc.

How will the ban on the export of broken rice help India?

This ban would ensure adequate availability of broken rice for consumption by the domestic poultry industry and for other animal feedstock and to produce ethanol for successful implementation of the Ethanol Blending Programme.