India Lifts Ban on Broken Rice Exports to Reduce Surplus

India Lifts Ban on Broken Rice Exports to Reduce Surplus

India has allowed the export of 100% broken rice after stockpiles reached a record 67.6 million tons—nearly nine times the government’s target, according to a notification.

Why This Move?

Helps reduce excess stock in India, the world's largest rice exporter.

Provides cheaper grain to poor African nations like Senegal and Djibouti.

Supports Asian animal feed and ethanol producers that rely on this grade.

Background

2022: India banned broken rice exports due to low rainfall.

2023: Curbs on all rice grades were introduced but later lifted, except for 100% broken rice.

2025 (Expected Exports): 2 million tons of broken rice.

2022 (Past Exports): 3.9 million tons, mainly to China and Africa.

Market Impact

Indian broken rice is priced at $330 per ton, slightly higher than Vietnam, Myanmar, and Pakistan at $300 per ton.

However, competing countries have limited stocks, and as their supply runs low, buyers are expected to shift to India, increasing exports.

???? This decision is expected to ease India's surplus while benefiting global markets in need of affordable rice.

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