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India Eases Restrictions on Broken Rice Exports to Manage Stockpiles

by Geraldine S.
03/10/2025
in Importing & Exporting

India has lifted restrictions on the export of 100% broken rice, according to a government notification issued late Friday. The decision follows a significant rise in domestic rice stockpiles, which reached 67.6 million tons as of February 1—nearly nine times the government’s target of 7.6 million tons.

The move is expected to help reduce surplus stocks in India, the world’s largest rice exporter, while providing lower-cost rice to African nations and supporting Asian animal feed and ethanol producers that utilize this grade.

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India had initially banned exports of 100% broken rice in September 2022 and later imposed restrictions on all other rice varieties in 2023 due to concerns over production following poor rainfall. However, with a record harvest improving supply conditions, New Delhi has now removed export curbs on all rice grades except 100% broken rice—until this latest policy shift.

“With this change, we anticipate exporting around 2 million tons of broken rice in 2025,” said B.V. Krishna Rao, president of the Rice Exporters’ Association. India previously exported 3.9 million metric tons of this grade in 2022, primarily to China for animal feed and to African countries such as Senegal and Djibouti for human consumption.

Broken rice is a byproduct of the milling process and is preferred by some African nations due to its lower cost compared to other rice varieties. Indian broken rice is currently priced at $330 per metric ton, slightly higher than offerings from competitors such as Vietnam, Myanmar, and Pakistan, where prices hover around $300 per metric ton.

“However, these competing countries have limited stocks. As their supplies diminish, buyers are likely to turn to India, which could boost exports in the coming months,” noted Himanshu Agrawal, executive director at Satyam Balajee, a leading rice exporter.

Explore comprehensive supply chain news at The Supply Chain Report. Those interested in international trade can visit ADAMftd.com for free tools.

#RiceExports #GlobalTrade #AgricultureNews #FoodSupply #MarketUpdate

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