India bans export of broken rice to curb price rise

After imposing a 20% export duty on non-basmati rice, the Centre has banned the export of broken rice with an aim to boost domestic availability.

The prohibition, however, will not apply to the supply of consignments that are already being loaded, the shipping bill has been submitted, or the product has been handed over to customs for clearance.

Meanwhile, the Union government levied a 20% export duty on various grades of rice on Thursday to increase domestic supplies. According to the reports, the export duty came into effect on Friday. Parboiled and basmati rice are exempt from the duty.

Over 150 countries import rice from India. Any slowdown in supplies would put more pressure on global food prices, which are already rising as a result of drought, heat waves, and Russia's invasion of Ukraine.

New Delhi accounts for more than 40% of worldwide rice shipments and competes in the international market with Myanmar, Thailand, Vietnam, and Pakistan.

India prohibited wheat exports in May after a series of severe heatwaves since March curtailed output and local prices reached a record high. The prohibition raised the demand for wheat flour, with exports increasing 200% year on year between April and July.