India Lifts Long-Standing Ban on De-oiled Rice Bran, Exports Head to Asia

In a major relief for the edible oil and agriculture sectors, the Indian government has swiftly lifted the long-standing export ban on de-oiled rice bran (DORB), a crucial ingredient in cattle and poultry feed. The decision, effective immediately, comes after persistent lobbying from the Solvent Extractors' Association of India (SEA), which highlighted how the restriction—imposed in July 2023 and extended multiple times until September 30, 2025—was choking domestic processors, forcing plant shutdowns, and slashing farmer incomes by an estimated ₹650 crore annually.

"The export policy of de-oiled rice bran is hereby amended from prohibited to free with immediate effect," announced the Directorate General of Foreign Trade (DGFT) in an official notification. This U-turn is expected to revive shipments of 5-6 lakh tonnes worth around ₹1,000 crore yearly, primarily to key Asian markets like Vietnam, Thailand, and Bangladesh. SEA, in letters to top ministers including PM Narendra Modi and Commerce Minister Piyush Goyal, argued that surplus DORB stocks—exacerbated by rising imports of cheaper alternatives like Distillers Dried Grains with Solubles (DDGS)—were going to waste, hurting rice millers in eastern states like West Bengal and curbing rice bran oil production.

The ban's original intent was to stabilize domestic feed prices and curb milk cost inflation, but SEA data showed protein meal prices plummeting 50% to ₹10,000-11,000 per tonne without easing dairy woes. Lifting it now promises a cascade of benefits: enhanced capacity utilization for processors, job creation in rural areas, boosted foreign exchange earnings, and better returns for rice farmers who supply the raw bran. "This is a win-win for industry, agriculture, and the economy," SEA President Sanjeev Asthana stated, noting India's established 30-year export footprint in the region.

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In tandem, the DGFT issued exemptions for exports of essential agricultural commodities to neighboring Bhutan—India's closest ally—bypassing all current restrictions until further notice. This includes dairy products, onions, potatoes, select vegetables, rice, wheat, tea, soybean oil, groundnut oil, palm oil, animal and vegetable fats, cane or beet sugar, and salt. The move underscores New Delhi's commitment to food security for Bhutan, where India accounts for over 80% of trade, valued at $1.77 billion in 2024-25. Major shipments like petrol, diesel, and rice will flow duty-free, reinforcing bilateral ties under the 2016 India-Bhutan Trade Agreement.

Adding to the export-friendly announcements, a one-time exemption allows the shipment of 100 tonnes of specialized Wheat seed (DWR-162) from the University of Dharwad, Karnataka, to Indonesia via the National Co-operative Exports Limited (NCEL) and Mangalore port. This high-yield, disease-resistant variety—developed by the Directorate of Wheat Research—aims to aid Indonesia's agriculture amid global supply crunches. The export, however, hinges on certification from the university or Karnataka's Agriculture Department, navigating broader wheat curbs imposed since May 2022 to prioritize domestic needs.

These policy shifts signal a pragmatic pivot in India's trade strategy: balancing internal stability with global outreach. As broken rice export bans were lifted earlier this year amid surging inventories, analysts predict DORB's green light could similarly flood markets, potentially lowering global feed prices while padding Indian exporters' books. For farmers and millers long sidelined, it's a long-overdue harvest of hope.

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