The government in recent notification on 7 November, 2022, has urged concerned authorities to clear broken rice consignments held up at container freight stations (CFS), which had come to them before the September 8 export ban decision. This will help contain high market volatility and aid countries dependent on Indian food exports in the face of the lost ‘bread basket’ in Ukraine.
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The government in recent notification on 7 November, 2022, has urged the concerned authorities to clear broken rice consignments held up at container freight stations (CFS), which had been handed over to these stations before the September 8 decision of their export ban.
The broken rice consignment which has been handed over to the customs before the ban and registered in their systems for exportation, shall be exported up to 30 November, 2022.
World’s biggest exporter of rice, India, banned exports of broken rice, and mandated an export duty of 20% on rice in husk (paddy or rough), husked (brown rice) and semi-milled or wholly-milled rice. The measures did not affect export of basmati or parboiled rice. The step taken in September, 2022 was to boost domestic supply and bring down local prices after below-average monsoon rainfall curtailed planting. The country in October allowed the broken rice shipments of 397,267 tonnes which are backed by letters of credit issued before September 8. This announcement assisted traders as many cargoes were trapped and supported many low income African countries, which use broken rice to feed their population.
India accounted for more than half of the broken rice exports in the first half of 2022. Its biggest importers are China, Senegal, Vietnam, Djibouti and Indonesia.
The recent push by government to clear the broken rice consignments will help in containing high market volatility and fight the world food crisis in the countries dependent on Indian food exports in the face of a lost ‘breadbasket’ in Ukraine owing to the Russian conflict.
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