India lifts ban on 100% broken white rice exports

India has lifted the ban on the exports of 100% broken white rice under ITC (HS) code 10064000, effective immediately, the Ministry of Commerce & Industry said in a notification released on March 7.

"The export policy of broken rice has been amended from 'Prohibited' to 'Free' with immediate effect," said the notification.

The decision is likely to boost exports and pressure prices of the same variety from Pakistan, Vietnam and Myanmar, according to the sources.

To rein in food inflation, India prohibited the exports of broken rice on Sept. 8, 2022. It then banned the export of white rice in July 2023 and imposed a 20% duty on shipments of parboiled rice in August 2023.

However, India's Ministry of Commerce and Industry last October announced the removal of the minimum export price of $490/mt for non-basmati white rice, which had been introduced following the lifting of the country's white rice export ban at the end of September.

Exports association members had told S&P Platts they were already in discussions with the government regarding the ban on 100% broken and were anticipating the decision.

Food Corporation of India data suggests swelling granaries. As of February, the central pool stored 34 million mt of milled rice and 50.147 million mt of unmilled paddy. The stock is against the buffer of 13.58 million mt for April 1.

Market participants expect more bearishness in the global market with pressure on 5% and 25% WR prices, while 100% broken local prices are likely to rise on export demand.

On higher supply, India is forecast to export 21.5 million mt of rice in the marketing year 2024-25 (October-September), up 49.3% year over year, according to Commodity Insights data.