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Manthan1709

Mar 14, 2025

India Faces Challenges In Broken Rice Exports

India Faces Challenges In Broken Rice Exports

Export Market Struggles After Ban Lift on Broken Rice Exports

India may find it difficult to regain buyers for 100% broken rice after lifting the export ban on March 7, 2025. Traders say India will struggle to reach previous export levels. The ban, imposed in September 2022, aimed to control domestic food inflation and address concerns over kharif rice production due to poor rainfall.

According to trade analyst S. Chandrasekaran, the government allowed exports again as domestic rice prices have dropped significantly. However, global rice prices are currently at a two-year low, which poses challenges for India’s competitiveness.

High Prices May Limit Demand for Indian Rice

Global rice stocks are at a record 36.7 million tonnes as of March 1, 2025, and India’s 100% broken rice is more expensive than other origins.

In 2021-22, India exported a record 17.26 million tonnes of non-basmati rice, with 3.89 million tonnes being broken rice. However, India’s prices are currently $50–60 per tonne higher than competing suppliers, which may drive buyers elsewhere.

African Buyers Could Offer Some Relief

India has previously supplied broken rice to African nations under government-to-government agreements, even during the export ban. Senegal, Gambia, and Mali remain key markets due to lower freight costs. However, Vietnam and ASEAN countries are gaining ground with cheaper offers to China and Indonesia.

Lower Exports Expected This Year

India is likely to export less broken rice than in 2021-22 due to shifting domestic priorities.

Additionally, rabi rice production is expected to increase to 15.75 million tonnes, which could further lower domestic prices and affect export competitiveness.

Final Thoughts

India may need to reduce its export prices or find new markets to remain competitive. With domestic ethanol demand rising, the availability of broken rice for exports will depend on how much surplus remains in the market.
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