India Resumes Broken Rice Exports Amid Record Surplus

India has lifted a ban on the export of 100% broken rice, following a surplus in inventories. This move aims to aid African nations with cheaper grain, bolster Asia's animal feed and ethanol sectors, and shift export regimes post-record harvest, with a projected export of 2 million tons by 2025.

In a significant policy shift, the Indian government has announced the resumption of exports for 100% broken rice, driven by an unprecedented surplus in domestic inventories. This decision, revealed in a late Friday notification, is poised to assist economically challenged African nations by providing more affordable grain options.

The initial export restrictions were placed in September 2022, coupled with additional curbs in 2023, due to drought-induced production anxieties. However, a robust harvest season has stabilized supply levels, prompting the government to lift bans on all rice grades except the broken variety until now.

Trade experts, including B.V. Krishna Rao of the Rice Exporters' Association, foresee exporting approximately 2 million tons of broken rice by 2025. Currently, Indian broken rice is priced at $330 per metric ton. This is slightly higher than competitors like Vietnam and Pakistan, but competitors’ limited supplies may sway buyers towards India, boosting exports significantly in the coming months.