India Lifts Ban on Export of 100% Broken Rice

The Government of India has lifted the ban on the export of 100% broken rice. This ban was in place since September 2022, but now, 100% broken rice can be exported from India. The decision was made amid high stockpiles in the central pool and declining rice prices in the international market.

A notification issued by the Ministry of Commerce and Industry said, "The export policy of broken rice has been amended from 'Prohibited' to 'Free' with immediate effect." 

The government made this decision at a time when rice prices have hit a two-year low due to sluggish demand and surplus stocks in the global market. Given the high domestic stocks and falling prices, the ban on exporting broken rice was expected to be lifted. With this move, approximately 2 million tonnes of rice are anticipated to be exported. 

Impact of Lifting the Ban

India’s decision to lift the ban on exporting 100% broken rice is likely to reduce high stocks while offering some support to domestic rice prices. The policy change is likely to increase competition in the global rice market. This move will put pressure on rice prices from Vietnam, Myanmar, and Pakistan and could help African countries to procure rice at lower prices. Additionally, countries using broken rice for animal feed and ethanol production may benefit from this decision.

India's rice exports are expected to rise, particularly to Southeast Asia and Africa and Indian rice exporters are expected to benefit from this move.

Easing of Rice Export Restrictions

To control food inflation, India banned the export of 100% broken rice in September 2022. Later, in response to concerns over a weak monsoon and declining production in 2023, restrictions were imposed on exports of various rice grades.

Following a good harvest and record production last year, India has been gradually easing restrictions on rice exports since September 2024. The ban on white rice exports was lifted, followed by the removal of the minimum export price of $490 per tonne for non-basmati white rice in October 2024. Several other restrictions on rice exports were also removed, leaving only the export ban on 100% broken rice in place—until now.

Huge Rice Stocks in the Central Pool

According to data from the Food Corporation of India (FCI), as of February 1, the total rice stock in the central pool stood at 67.6 million tonnes—far exceeding the buffer stock limit of 7.6 million tonnes. Given the abundant government stock, the ban on exporting broken rice has now been lifted.