Broken Rice Export Prohibited Again, Export Allowed only on Case to Case Basis

· Broken Rice Export was Prohibited earlier on 9 Sept 2022 but was opened on 9 Nov 2022. Now it is Prohibited with Limited Export

· Export will be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their Government. West Africa, Senegal and Gambia Emerges as Major Buyers

The government late on Wednesday (24.05.2023) allowed exports of broken rice based on permission given by the government for shipments to other countries for meeting their food security needs, though the export ban on broken rice is in place.

“The export policy of broken rice is prohibited; however, export will be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their government, the Directorate General of Foreign Trade (DGFT) said in a notification.

India will dispatch around 1.05 million tonnes (MT) of foodgrains to Nepal, Indonesia, Senegal and Gambia as part of its economic diplomacy during six months of the current financial year. The department of food and public distribution has allowed exports of 300,000 tonnes wheat to Nepal; 200,000 tonnes of broken rice to Indonesia; 500,000 tonnes broken rice to Senegal, and 50,000 tonnes of broken rice to Gambia on a request by external affairs ministry.

In September last year, India had banned the exports of broken rice and imposed 20% export duty on non-basmati varieties, except parboiled to keep prices in check due to concern over production amid below-average monsoon rainfall in key growing states.

India, the second-largest rice producer after China globally, accounts for 40% in the world trade.

In 2022-23 financial year, the country exported 17.79 MT of non-basmati rice as compared with 17.3 MT in FY22, while broken rice exports were 23% lower on year at 3 MT because of a ban on shipments imposed to keep domestic prices down.

In December 2022, the government allowed exports of organic non-Basmati rice and organic non-basmati broken rice.

[DGFT Notification No. 07/2023 dated 24 May, 2023]

Effect of this Notification: The export policy of broken rice is prohibited; however, export will be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their Government.

Subject:- Amendment in Export Policy of broken rice under HS Code 1006 40 00.

S.O. (E) The Central Government, in exercise of powers conferred by Section 3 read with section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2023, hereby incorporate the Policy Conditions for broken rice against ITC (HS) code 1006 40 00 of Chapter 10 of Schedule 2 of the ITC (HS) Export Policy, as under:-

ITC HS Codes	Description	Export Policy	Policy Conditions
1006 40 00	Only for broken rice	Prohibited	Export will be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their Government.

(Issued from File No. 01/91/171/35/AM20/E-File/Part-1/E-19680)