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Supply Chain

India Examining Need To Curb 100% Broken Rice Exports, Sources Say

India, the world's biggest exporter of rice, is examining whether there is a need to restrict exports of 100% broken rice mainly used for feed purposes, government and industry officials told Reuters on Friday.

The curbs on exports by India could lift rice prices in the world as the south Asian country accounts for more than 40% of global rice shipments.

"We have been discussing whether we need some sort of curbs on 100% broken rice exports," said a senior government official involved in the decision making.

Overall Rice Exports

India is more than comfortable in terms of both private and government rice stocks, so there is no point in considering any curb on overall rice exports, said the official, adding "the discussions are confined to broken rice which is primarily used as a feed variety."

India usually exports 5% and 25% broken rice, but in last few months demand for 100% broken rice have risen sharply, especially from drought hit China, exporters said.

"The local cattle feed industry has been demanding to put restriction on the exports of 100% brokens so they can have more supplies," said an exporter based at Kakinada in Andhra Pradesh.

India banned wheat exports on 14 May, just days after New Delhi forecast record shipments of 10 million tonnes this year, as a heatwave hit output and sent domestic prices to record highs.

Read More: Sri Lanka Faces Looming Food Crisis With Stunted Rice Crop

News by Reuters, edited by ESM. For more supply chain news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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