India approves export of broken rice to Senegal, Gambia and Indonesia

India has approved exports of broken rice to Senegal, Gambia, and Indonesia following a request from the three nations, the Directorate-General of Foreign Trade (DGFT) has said. However, the quantity of broken rice allowed for export to these nations is unknown. DGFT to allocate quota to exporters to ship consignments to these countries

In a trade notice issued on Tuesday, the DGFT said only exporters who have shipped all types of rice over the past three years to Senegal, Gambia and Indonesia will be given the shipments quota for exporting broken rice.

The Centre had banned exports of broken rice on September 8, 2022, and then amended it on May 24 allowing shipments to countries to meet their food security needs “based on the request of their government”. 

Minimum threshold: The DGFT said exporters could file applications online from Thursday till June 30 seeking to ship a minimum threshold of 8,000 tonnes by sea. “Application will be allowed only if the exporter applies for a quantity more than the minimum threshold,” it said. The allocation will be made on the basis of pro-rata to the average export of rice (all varieties) respectively to the country concerned in three years before the financial year when the shipments were barred. 

The permit given to exporters will be valid until December 31 and they will have to submit a “landed certificate” within a month of completion of the export of allocated quota of broken rice.

Earlier in February, the Centre approved exports of 2.5 lakh tonnes of broken rice to Senegal and one lakh tonnes of rice to the Gambia as a special consideration when the ban on shipments was in force. In addition, it allowed 9,900 tonnes of broken rice to Djibouti.

Trade analysts said the export of broken rice is being allowed on request from these governments for strategic reasons since the Ministry of External Affairs is involved. 

The Centre banned exports of broken rice and imposed a 20 per cent duty on shipments of white and brown rice after the kharif paddy production was affected by the deficient monsoon in key rice-growing regions in the eastern parts last year. 

In the kharif season, rice production was estimated lower at 108.07 million tonnes (mt) in 2022 compared with 111 mt in 2021. However, the production was raised to 110 mt in the third advance estimate by the Agriculture Ministry. 

Overall, rice production for the current crop year ending June 30 has been pegged at a record 135.54 mt.