India lifts ban on 100% broken rice exports amid record grain stocks

INDIA – The Indian government has lifted the ban on exports of 100% broken rice in a significant move to reduce its overflowing rice stocks, according to a notification issued on March 7.

The decision comes as the country’s rice inventories hit a record high of 67.6 million tons at the start of February, nearly nine times the government’s target of 7.6 million tons.

The resumption of broken rice exports is expected to ease the burden of surplus stocks in the world’s largest rice exporter and offer affordable grain to poor African nations.

Additionally, the move will support Asian animal feed and ethanol producers who depend on this grade of rice. India had previously banned the export of 100% broken rice in September 2022 and imposed restrictions on other rice grades in 2023 due to concerns over production following poor rainfall.

However, with the country harvesting a record crop, New Delhi has now removed curbs on all rice grades.

“Now that broken rice exports are allowed, we anticipate exporting around 2 million tons of this grade in 2025,” said B.V. Krishna Rao, president of the Rice Exporters’ Association (REA).

 India had exported 3.9 million metric tons of broken rice in 2022, primarily to China for animal feed and to African nations such as Senegal and Djibouti for human consumption.

Broken rice, a byproduct of milling, remains in high demand in African markets due to its lower cost compared to other grades.

Currently, Indian broken rice is priced at US$330 per metric ton, higher than Vietnam, Myanmar, and Pakistan’s rates of around US$300 per metric ton, according to Himanshu Agrawal, executive director at Satyam Balajee, a leading rice exporter.

However, he noted that as rival suppliers’ stocks dwindle, buyers will shift to India, leading to an expected increase in exports in the coming months.

India to produce record wheat crop

Meanwhile, India is poised to achieve record grain production in the 2024-25 season. According to a March 10 report from the Ministry of Agriculture and Farmers’ Welfare, the country is set to produce record amounts of wheat, corn (maize), soybeans, and rice.

Wheat production is estimated to reach 115.4 million tonnes, up from 113.3 million tonnes in the previous season.

Rising wheat prices earlier this year, driven by strong demand and low supplies, prompted increased government procurement, with 26.6 million tonnes of wheat purchased so far out of a targeted 30-32 million tonnes. Wheat stocks stood at 14.41 million tonnes at the beginning of March, well above the government’s norm of 7.46 million tonnes.

Similarly, rice production is projected at 120.7 million tonnes, while corn output is expected to reach 24.8 million tonnes. Soybean production is also set to hit a record 15.1 million tonnes, reflecting a strong agricultural performance.

Minister Shri Shivraj Singh Chouhan attributed the increase in production to government initiatives aimed at supporting farmers and boosting the agricultural sector.

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