India has ended its over two-year ban on de-oiled rice bran exports. The Directorate General of Foreign Trade (DGFT) issued a notification stating that exports of de-oiled rice bran are now allowed without restrictions, amending the policy from “Prohibited” to “Free” with immediate effect. The move comes amid record rice stockpiles and aims to boost production of cattle feed and rice bran oil while reducing dependence on imported edible oils. During the ban prices of de-oiled rice bran had fallen by nearly 50%, to around ₹10,000 per ton. Exports had declined sharply, impacting eastern states like West Bengal, where local demand is limited. The revised policy is expected to improve returns for farmers and processors, revive local prices, and boost Indian exports.
India on Friday (October 03, 2025) announced the immediate lifting of its over two-year ban on de-oiled rice bran exports, officially ending the longstanding restrictions. The policy change comes as India holds a record rice stockpile ahead of an anticipated bumper harvest.
The Directorate General of Foreign Trade (DGFT) stated in a notification, “the export policy of de-oiled rice bran is hereby amended from ‘prohibited’ to ‘free’ with immediate effect.”
The Solvent Extractors’ Association of India (SEA) reported that prices of de-oiled rice bran have fallen by nearly 50% since the ban, currently hovering around ₹10,000 (US$113) per ton. Industry experts believe the move will boost production of both de-oiled rice bran—an essential input for cattle feed—and rice bran oil. They noted that the policy change could revive local prices and help the industry export surplus quantities, restoring profitability across the rice bran value chain.
SEA executive director Mr B.V. Mehta stated that lifting the export ban would benefit the rice milling and solvent extraction sectors, particularly in eastern India, by improving returns for farmers and processors.
Indian market participants have welcomed the policy change, anticipating the arrival of the new paddy crop in the market between late October and November.
Mr Sanjeev Asthana, President of the Solvent Extractors’ Association of India (SEA), said, “SEA sincerely appreciates the proactive intervention of the Government in addressing this long-pending demand of the industry.”
As India remains the world’s largest importer of edible oils such as palm, soy, and sunflower oils—sourced from Malaysia, Indonesia, Argentina, Russia, and Ukraine—the decision is expected to enhance domestic extraction and increase the availability of rice bran oil, thereby reducing import dependency.
The Indian government had imposed a ban on the export of de-oiled rice bran through a notification dated July 28, 2023, citing rising prices of milk and milk products—attributed to high fodder costs—as the primary reason. De-oiled rice bran, being a major component of cattle feed, was considered essential to managing feed costs and, in turn, stabilising milk prices.
However, the Solvent Extractors’ Association of India (SEA) had contested this reasoning at the time, pointing out that even a 10% reduction in de-oiled rice bran prices would result in only a marginal decrease in cattle feed costs. As a result, the effect on milk prices would be minimal, likely not exceeding a 1% reduction.
SEA, in a recent letter to the government observed that market demand for commodities across sectors had surged sharply after the easing of the Covid-19 pandemic in late 2022. This spike was driven by pent-up demand, production disruptions, and logistical challenges. Moreover, disruptions in the supply chain caused a rise in prices across food grains, pulses, metals, chemicals, and other commodities.
While the export ban was intended to contain feed costs and stabilise milk prices, the situation over the last two-and-a-half years has unfolded differently. Prices of protein meals have fallen by 40-50%, while milk prices continued to rise. Notably, the price of de-oiled rice bran, which stood at ₹20,000 per tonne in July 2023, fell to ₹10,000–11,000 per tonne by July 2025.
Before the export ban in July 2023, India exported around 5–6 lakh tonnes of de-oiled rice bran annually, worth approximately ₹1,000 crore, primarily to Vietnam, Thailand, and other Asian markets, establishing itself as a reliable supplier internationally.
In 2023-24, up to July 28, India had exported 1.51 lakh tonnes of rice bran extraction valued at ₹241 crore. In comparison, total exports stood at 5.95 lakh tonnes (₹950 crore) in 2022-23 and 7.49 lakh tonnes (₹984 crore) in 2021-22, reflecting a significant decline after the ban.
Eastern states, including West Bengal, are key producers of rice bran extraction. According to the Solvent Extractors’ Association of India (SEA), the cattle feed industry in this region remains underdeveloped, with limited local demand for rice bran extraction. High freight costs to transport rice bran extraction to southern and western India made exports the primary channel for moving the product from Eastern India, highlighting the region’s reliance on international markets for disposal and trade of rice bran extraction.
As of September, India’s central rice reserves stood at 36.906 million metric tons of milled rice and 16.902 million metric tons of unmilled paddy, well above the buffer stock norm of 10.25 million metric tons for October, according to Food Corporation of India data. At the same time, India is expected to export 25 million metric tons of rice in 2025-26, marking a year-on-year increase of 1 million metric ton. Exports of milled rice are also expected to rise by 1 million metric ton, reaching 151 million metric tons, according to the U.S. Department of Agriculture.
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