Department of Food & Public Distribution (DFPD), Ministry of Consumer Affairs and Food & Public Distribution has amended the export policy of broken rice in order to ensure adequate availability of broken rice for consumption by domestic poultry industry and for other animal feedstock; and to produce ethanol for successful implementation of EBP (Ethanol Blending Programme) program.
About 50-60 LMT of broken rice is produced annually in India which is mainly used as poultry feed and feed for other animals. It is also used as a feedstock by the grain based distilleries for producing ethanol which is supplied to Oil Marketing Companies (OMCs) for blending with petrol.
The domestic prices of Rice are showing increasing trend and it may continue to increase due to low production forecast by about 10 MMT of Paddy and 11% increase in export of Non basmati compared to corresponding period of last year. However, with export of 212 LMT last year, it can be said that India is still surplus in rice production.
In order to ensure adequate availability of broken rice for consumption by domestic poultry industry and for other animal feedstock; and to produce ethanol for successful implementation of EBP program, Govt. of India has amended the export policy of broken rice (under HS Code 10064000) w.e.f 9th Sep, 2022 from “Free” to “Prohibited” as per Notification No. 31/2015-2020 dated 8th Sep, 2022 with certain relaxations during the period 9th-15th Sep, 2022 only for cases where loading of consignment has commenced before this Notification, shipping bill is filed and vessels have already berthed or arrived and anchored in Indian ports and their rotation number has been allocated before this Notification, consignment has been handed over to the Customs before this Notification and is registered in their system
Amendment in export policy of Non Basmati Rice (Others) (HS Code 1006 - 3090), Rice In Husk (Paddy Or Rough) (HS Code 1006 – 10), Husked (Brown Rice) (HS Code 1006 – 20), Non Basmati Rice (Parboiled Rice) (HS Code 1006 – 3010)
International price of Indian rice (non-basmati others HS Code 10063090) is selling around Rs. 28-29/kg which is higher than the domestic price. An export duty of 20% on Rice in Husk (Paddy or Rough), Husked (Brown Rice) and Semi-milled or Wholly milled Rice whether or not polished or glazed other than par-boiled rice and basmati rice has been imposed by the Government. This would lead to lowering of prices of rice.
No change in Export policy of Non Basmati Rice (Par Boiled Rice) and Basmati Rice
The government has not made any changes in the policy relating to par-boiled rice (HS CODE = 1006 30 10) so that farmers continue to get good remunerative prices. Further, dependent and vulnerable countries will have adequate availability of par-boiled rice as India has significant share in the global rice export.
Similarly, no change in policy in Basmati rice (HS CODE = 1006 30 20) has been done as basmati rice is premium rice which is majorly consumed by the Indian Diaspora in different countries and its export quantity is very less compared to other rice.
Source : PIB
Last Modified : 9/12/2022