Fact Sheet: Justification for changing India's rice export regulations

The export of broken rice has increased by more than 43 percent in the last four years . The poultry industry and animal husbandry farmers were the most affected by the price hike in feed ingredients .

New Delhi (India), September 23: The most recent revisions to India's rice exports policy were made keeping in mind the need to support the ethanol-blending scheme, which saves costly oil imports, and to support the animal husbandry and poultry industries by lowering the cost of animal feed, which has a bearing on the price of milk, meat, and eggs, according to a Ministry of Consumer Affairs, Food and Public Distribution statement released on Thursday evening, describing the government's position and Over the last four years, the export of broken rice has increased by more than 43 percent (21.31 LMT exported from April-August 2022 relative to 0.51 LMT in the same period in 2019), with a dramatic increase in 2021-22 relative to last year.The volume exported was 15.8 LMT in the year 2021 (April-August 2021).Prices of broken rice increased sharply in the current year, according to India's Ethanol Blending Scheme.Since the Ethanol Season Year (ESY) 2018-19, India has allowed grain-based ethanol, and in ESY 2020-21, the Food Corporation of India has been allowed to sell rice to ethanol plants for fueling ethanol production.

Price of rice in the domestic market: As of 19.9.2022, the average price of rice increased 0.24 percent, 2.46 percent, and 8.67 percent.Rice production forecast for the Kharif season 2022 will be 15.14 percent.* Based on an average of five years, the most likely shortage in area and production is 6%.Production loss was forecast for 60-70 LMT in domestic production earlier than was predicted.

It is also used as a feedstock by grain-based distilleries for producing ethanol, which is supplied to Oil Marketing Companies (OMCs) for the purpose of fulfilling blending requirements (20 per cent), according to Govt.of India's Export Policy No.312015-2020dated August 9, 2022, with some changes occurring only when the shipment has berthed or arrived and anchored in Indian ports before this Notification, the shipment has been handed over to the Customs prior to this The Government has imposed a 20 percent import duty on 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.This would result in a drop in the value of rice.No changes have been made to the export policy for Non-Basmati Rice (Par Boiled Rice) and Basmati Rice (Peasant Rice) to ensure that farmers continue to receive competitive prices.