Potential Ban on Exports of Broken Rice from India

New Delhi. A leading exporters' body, the Indian Rice Exporters Federation (IREF), has warned that if the upward trend in the prices of 100 percent broken rice persists, the government may consider banning its export. The global market price for this broken rice has surged, climbing above $360 per tonne.

Competition for rice procurement is intensifying between foreign importers and domestic buyers. Within the domestic market, significant quantities of 100 percent broken rice are being purchased, particularly by ethanol producers and the poultry feed industry. Similarly, there is strong demand for this rice globally, especially from African nations.

Domestic prices for broken rice continue to rise. If these prices do not soften or stabilize, the central government may be compelled to intervene. Consumer industries are already grappling with the high costs of soy meal and maize, and now, broken rice has also become significantly more expensive.

In 2027, assembly elections are scheduled to take place in five Indian states, including major rice-producing states like Uttar Pradesh and Punjab. At such a critical juncture, the government would certainly not want food inflation to spiral out of control.