Broken rice export

Broken rice export

Subject: Economy

The Indian government’s ban on exports of broken rice will eliminate its trade that had increased 53 per cent last year, the US Department of Agriculture (USDA).

Details:

• Broken rice exports accounted for nearly 20 percent (first half of 2022) and 10% (2021) of the total rice exports.
• Rice trade is estimated to contract in 2022 partly due to the new Indian policy to ban exports of broken rice.
• India contributed to over 50 per cent of the global trade in broken rice.
• China, Vietnam and Senegal are the major importers of broken rice.

About the ban:

• Recently, India has banned exports of broken rice and imposed a 20% duty on exports of non-Basmati rice except for parboiled rice to boost domestic supplies amid a fall in area under the paddy crop in the current Kharif season.
• There are four categories of rice exports. 
  • Out of these, exports in the case of two – basmati rice and parboiled non-basmati rice –are still freely allowed.
  • The curbs are only for the other two: raw (white) and broken non-basmati rice.
• Why did the Government Ban the Export?
  • Unusual rise in Exports
  • China was the top buyer (15.85 LMT) of Indian broken rice in 2021-22.
  • Paucity in Domestic Market
  • Rise in Global Demand-due to low cost
  • Decline in Domestic Production due to fall in area under paddy cultivation

Trends in rice production and export:

• India is the world’s biggest exporter of rice which accounts for more than 40% of global rice shipments and it competes with Thailand, Vietnam, Pakistan, and Myanmar in the world market.
  • Non-basmati rice accounts for the lion’s share in the basket of Indian rice exports.
  • China emerged as the top buyer of Indian rice during the pandemic, with the import of 7.7 per cent — of India’s total rice export in financial year 2021-22
  • Of the total rice imports from India, nearly 97 per cent was broken rice.
• India, the world’s biggest rice consumer after China.
• China is the world’s largest producer and largest rice importer.

Parboiled and Broken Rice

• Paddy typically has 20-21% husk (the inedible covering of the grain) and 10-11% bran (the brown outer layer of the edible kernel).
• What remains after removal of the husk and bran is the white raw rice that constitutes 68-69% of paddy.
• Parboiling is a process where the paddy is soaked in water, steamed and dried while retaining its outer husk.
  • It results in the rice becoming harder with less breakage on milling.
  • The parboiled rice exported from India contains 5-15% broken grains.
  • In raw rice, the brokens are normally up to 25%.
  • It is the rice having 100% brokens whose exports have been prohibited.
• Broken rice is fragments of rice grains, broken in the field, during drying, during transport, or during milling.
• Broken rice is fragmented, not defective.
• It is as nutritious as the equivalent quantity of unbroken rice.

Significance of Broken Rice:

• Manufacture of feed for very young animals, livestocks and for pets.
  • It is particularly suitable due to its rich caloric value and low fibre content.
• Brewing industry-where it is mixed with barley and the production of arak (aniseed alcoholic drink, distilled, colourless drink).
• Raw material for rice flour, used in baby food, breakfast cereals, rice wine, rice liqueur, sake, and prepackaged and canned foods.