DGFT issues notification making it ‘free’ from the prohibited list.

By Subramani Ra Mancombu

The Indian government on Friday lifted the ban on 100 per cent broken rice, which was in place since September 2022. 

In a notification issued late in the evening, the Directorate-General of Foreign Trade said that, as per the revised policy, exports of broken rice will be free. Till now, it had been “prohibited”.

The move comes as India’s rice storages are overflowing, and the exporting industry has also been pressing for it. African nations, particularly Senegal, besides China and Vietnam, were big buyers of the broken grain before the Centre imposed the ban to ensure ample supplies in the domestic market.

Trade sources said they had been anticipating the decision for nearly a week now. However, they said India will have to find takers now with Vietnam and Pakistan turning tough competitors.

Vietnam is offering 100 per cent broken white rice at $307 a tonne free-on-board, while Pakistan is quoting at $308. Thailand is selling the variety at $356 a tonne. Given the current pricing trend, Indian may be offer it at a higher price than Vietnam and Pakistan.

The opening of Indian 100 per cent broken rice exports will put further pressure in the already bearish rice market, where prices are at 2-year lows, traders said. With global production and ending stocks being estimated higher and demand being slack with buyers stocked up, prices are under pressure. Arrivals of new crop in Asia are outting further pressure on the prices.

Published Date: March 7, 2025