India Allows Export of Broken Rice; Ban Lifted With Immediate Effect
As inventories cross 900% of the target stockpile, India has lifted the ban on export of broken rice effective immediately.
India, the world’s top rice exporter, lifted its ban on broken rice exports, a restriction in effect since September 2022. The Directorate General of Foreign Trade (DGFT) shifted the export policy for broken rice (HS code 1006 40 00) from "prohibited" to "free" immediately, tapping into India’s robust reserves to bolster its 40% share of the global rice market. Broken rice, a byproduct of milling, is prized for its affordability, particularly in African countries like Senegal and Benin, where it serves as a cost-effective staple.
The original ban aimed to safeguard domestic supply after a 6% drop in Kharif paddy acreage and rising rice prices, exacerbated by global disruptions from the Russia-Ukraine war. Exports of broken rice, which soared over 90% in FY22 to $1.1 billion (with China as the largest buyer), were curtailed, dropping from $983.46 million in 2022-23 to $194.58 million in 2023-24. Limited exceptions allowed shipments for food security, while organic broken rice exports resumed in December 2022 as stocks improved.
India’s confidence in lifting the ban stems from substantial reserves. As of February 1, 2025, the Food Corporation of India (FCI) reported state granary stocks, including unmilled paddy, at 67.6 million tons—far exceeding the government’s target of 7.6 million tons. This surplus, coupled with stable domestic prices, prompted the policy shift, addressing exporters’ pleas to offload rising broken rice inventories straining storage capacities.
The decision promises a boon for exporters, while easing global rice price pressures. African nations stand to benefit from renewed access to this cheaper grade, used widely for food, animal feed, and ethanol production. Though domestic industries may face export-driven competition, India’s vast reserves should prevent significant disruptions.
