The government has banned the exports of broken rice and imposed a 20 per cent duty on exports of non-Basmati rice amid concerns over low production due to a fall in area under the paddy crop. The export policy of broken rice has been amended through a notification issued by the Directorate General of Foreign Trade (DGFT) dated September 8, 2022.
As per the notification, the export policy for broken rice has been amended from “free” to “prohibited”. The notification became effective from 9th September 2022.
The government has also imposed 20 per cent duty on exports of non-Basmati rice except for parboiled rice. The price of broken rice which was around Rs 15-16 per kg has been increased to Rs 22 and as a result broken rice is neither available for poultry feed nor for ethanol for which they were using broken rice, Sudhanshu Pandey, Secretary, Department of Food and Public Distribution, said at a press conference.
As regards the ban on the exports of broken rice, the government has provided some relief for exporters. As per the DGFT notification, during the period from 9th September 2022 till 15th September 2022 the consignments of broken rice will be allowed to be exported: where loading of broken rice on the ship has commenced before the notification.
The exports of broken rice will also be allowed in case the shipment bill is filed and vessels have already berthed or arrived and anchored in Indian ports and their rotation number has been allocated before the notification. “The approval of loading in such vessels will be issued only after confirmation by the concerned Port Authorities regarding anchoring/berthing of the ship for loading of broken rice prior to the notification,” the DGFT said.
The exports would also be allowed if the broken rice consignment has been handed over to the Customs before the notification and is registered in their system.