02-Jun-2023
India, the second-largest producer, and consumer of rice in the world, recently made the crucial choice to permit the export of broken rice. Broken rice refers to rice grains that are broken during the milling process, resulting in fragments of various sizes. This move has raised several eyebrows and sparked curiosity about the reasons behind such a decision. In this blog post, we will explore the key factors that led to India's allowance of broken rice exports and the potential implications of this decision.
According to a notice released by the Directorate General of Foreign Trade (DGFT), the export policy of broken rice is restricted, but export will be enabled on the basis of permission granted by the Government of India to other countries in order to obtain their food security needs and based on the request of their government.
The government recently allowed exports of broken rice to other countries in order to meet their needs for food security, even though the export of broken rice is typically forbidden. According to India Rice Export Data, India banned the export of broken rice and levied a 20% levy on the export of a number of grades in September.
The action comes in response to the Indian government's decision last week to allow entirely broken white rice exports, which had been prohibited as of September 8, 2022, on the basis of the authorization granted to other nations to meet their demands for food security.
Broken rice, which is prohibited from export, is mostly utilized as animal feed. This year, prices have increased as a result of increased export demand. China, which imports it for use as cattle feed, and a few African nations, which purchase it for use in food, are among the main consumers. According to Rice Export Data, 20% of India's exports are made up of rice.
Broken rice has a distinct, softer texture than "unbroken" rice and is more flavor-absorbent due to the variable size and shape of the grains. It may be used to prepare rice porridges and congees, which require prolonged cooking times, and cooks faster while using less fuel.
Brewing, distilling, and the production of starch and rice flour all use broken rice. In addition to being utilized as fuel and packing material, hulls are also employed in the production of fertilizer, an industrial chemical called furfural, and industrial grinding.
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India's greatest producer of rice is West Bengal. As is well known, one of the most significant food crops worldwide is Indian rice. However, millions of Indians rely heavily on rice as a source of food which is a significant point for the Indian economy.
The following is a list of India's top 3 rice-producing states as of 2020–21:
These three states contribute 36% of all the rice produced in India, according to data on rice export from India. West Bengal was the source of 13.62 percent of all the rice produced in India. Uttar Pradesh provided 12.81% of the total rice produced in India. Punjab produced 9.96% of all the rice produced in India.
One of the primary reasons behind India's decision to allow broken rice exports is to meet the global demand for this particular rice variant. Broken rice has a wide range of applications, such as in producing rice flour, baby food, cereals, and brewing. Additionally, broken rice is a staple in many nations' domestic food supplies and food security, particularly in Southeast Asia and Africa. India can access these markets and position itself as a trustworthy provider by exporting damaged rice.
India has been producing an excess of rice in recent years as a result of a number of factors, including favourable weather circumstances, improved agricultural techniques, and government initiatives to raise the output of food grains. Previously underutilized or used for low-value purposes like animal feed or industrial processing, broken rice can now be exported to strengthen the economy and increase farmer income. India is able to reduce waste and increase its rice production by allowing the export of broken grains.
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The decision to permit broken rice exports aligns with India's broader economic objectives. It opens up new avenues for income generation and export earnings, contributing to the country's foreign exchange reserves. The revenue generated from broken rice exports can be reinvested in agricultural infrastructure development, research and development, and welfare programs for farmers. This move not only stimulates the economy but also promotes farm growth and rural prosperity.
The Indian government's decision to allow broken rice exports serves as a strategic move to enhance the competitiveness of the country's rice industry. By exploring new markets and diversifying product offerings, Indian rice exporters can gain valuable market insights, establish international trade relationships, and expand their global presence. This step encourages innovation in rice processing techniques, quality control measures, and packaging standards, making the Indian rice industry more competitive on a worldwide scale.
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In accordance with its obligations under international trade agreements, India decided to allow the export of broken rice. Also, India strives to ensure that the trading system is transparent and fair. By lifting restrictions on the export of broken rice, India demonstrates its commitment to reducing trade obstacles and advancing free trade principles. This action promotes deeper diplomatic connections and potential future commercial deals while enhancing India's standing as a trustworthy and accountable trading partner.
India's decision to allow broken rice exports stems from a combination of factors, including the need to meet global demand, utilize surplus production, boost the economy, enhance industry competitiveness, and fulfill trade commitments. However, to find the rice supplier from India, you need to connect with Export Import Data experts, we will provide you with the best market insights globally. Also, you can obtain reliable India Rice export Data, Broken rice exports data, and much more. Get Ready to Transform Your import-export Journey with our free live demo!
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