Broken rice has been banned by India with immediate effect. Previously, exports were allowed. Now, they are prohibited.
There will, however, be some exports allowed until September 15, including for broken rice that has been loaded onto the ship before this ban order, where a shipping bill has been filed and a vessel has already berthed or arrived and anchored in an Indian port, and a rotation number has been assigned, as well as broken rice that has been handed over to customs.
Due to the fact that the overall area sown under paddy this Kharif season could be lower than last year, the ban on exports is significant. The impact of this can be felt both in crop prospects and in future prices.
In addition, the Centre increased export duties on non-Basmati rice, except for parboiled rice, by 20 percent on Thursday. As of September 9, export duties will be imposed.
As per a notification from the revenue department, rice in husk (paddy or rough) and brown rice husked has a 20 percent export duty.
Further, the Central Board of Indirect Taxes and Customs stated that the export of ‘semi-milled or wholly-milled rice (other than parboiled rice and basmati rice) will be subject to a 20 percent duty.
With 383.99 lakh hectares under paddy cultivation this Kharif season, this is around 6 percent less than last season.
This Kharif season, Indian farmers sowed less paddy. Summer months, June and July, are the best months for sowing kharif crops and November and October are the best months for harvesting.
This decline can be attributed mainly to the slow advance of the monsoon in June and its uneven spread in July in some of the country’s most important growing regions.
In India, many people were concerned that the lack of paddy land under cultivation this Kharif may result in low paddy production.
Wheat exports were earlier in May moved to the “prohibited” category on possible risks to food security under the Centre’s export policy.
While prohibiting wheat exports, the government stated that the move was made to manage the country’s food security and to meet the needs of its neighbours.
In addition to restricting wheat exports, the Indian government also imposed other restrictions.
The Center banned wheat grain exports, then restricted wheat flour exports (atta) as well as other related items like maida, semolina (rava/sirgi), wholemeal atta, and resultant atta.
During the ongoing conflict in Ukraine, staple food grains have been in short supply and are at a premium.
Wheat prices have risen substantially in recent months due to increased supply from Ukraine and Russia.
The prices in India are also buoyant, trading above the minimum support level. Some wheat crops were damaged by multiple rounds of heat waves in several wheat-growing regions in India ahead of the rabi harvest.