The recent removal of the ban on broken rice exports by the Indian government is expected to boost market opportunities in West African countries, such as Gambia, Benin, and Senegal, as well as in Indonesia, in the upcoming fiscal year, according to exporters. This marks the lifting of the last restriction on rice shipments, which had been in place since September 2022 to secure domestic supplies.

Before the ban, India annually exported 1-2 million tonnes of broken rice, but the restrictions allowed competitors like Vietnam, Thailand, and Pakistan to capture the market. BV Krishna Rao, president of the Rice Exporters’ Association, expressed optimism about regaining India’s export competitiveness in 100% broken rice exports within the next few months.

This policy shift is expected to alleviate India’s central rice stocks while providing African countries with affordable grain. It will also support Asian industries, including animal feed and ethanol production. The restriction was initially introduced following global supply chain disruptions caused by the Russia-Ukraine conflict but was later relaxed for certain needy countries, including Gambia and Indonesia.

In FY24, India exported broken rice valued at $194 million, significantly lower than $983 million in FY23 and $1.13 billion in FY22. Restrictions on rice exports also contributed to a 6.5% decline in total rice exports, valued at $10.41 billion.

With all export limitations now lifted, the industry anticipates a 15% growth in rice exports for FY25, potentially surpassing $12 billion due to strong global demand. Ranjit Singh Jossan, Managing Director of Jossan Grains, remarked that lifting restrictions could revitalize the industry, which faced sharp price declines during the ban.

During the April–January period of FY25, rice exports surged by over 22%, reaching $10 billion compared to $8.26 billion during the same period the previous fiscal year. Furthermore, the government recently extended a rule exempting certain non-basmati and basmati rice exports to European countries (excluding the UK and several others) from inspection certifications for six months.

India’s Food Corporation currently holds rice stocks totaling 36.9 million tonnes, excluding 31 million tonnes receivable from millers. These stocks far exceed the 13.58 million tonne buffer requirement for April 1.