Indian exporters may face difficulty in shipment of broken rice
13-Mar-2025 12:08 PM
Indian Exporters Face Challenges in Resuming Broken Rice Shipments
New Delhi: Despite the lifting of the ban on 100% broken rice exports on March 7, 2025, Indian exporters may struggle to reclaim their lost market share. Fierce competition from Pakistan, Myanmar, and Vietnam, coupled with domestic demand from ethanol producers and the poultry feed industry, poses a significant challenge.
Key Challenges for Indian Exporters:
Global Competition
- India’s export price: $360 per tonne
- Competitor prices:
- Vietnam: $307 per tonne
- Pakistan: $307 per tonne
- Thailand: $354 per tonne
- Indian broken rice (Tukdi) is costlier, making it less attractive in international markets.
Declining Global Rice Prices
- Rice prices have dropped to a two-year low, affecting demand for Indian rice.
Strong Domestic Demand
- Ethanol manufacturers and the poultry feed industry in India are major consumers.
- Government rice stock: 367 lakh tonnes (as of March 12, 2025).
- Government-subsidized rice: ₹2250 per quintal, making it more viable for domestic use.
Past Export Performance & Current Outlook
- 2021-22 Record: Non-basmati rice exports hit 172.60 lakh tonnes, with 38.90 lakh tonnes being broken rice.
- Current Scenario: Exporters expect slower recovery due to high domestic consumption and price competition abroad.
Although the Indian government has reopened exports, rebuilding demand and competing globally will be an uphill battle for Indian rice exporters.