Ban on Export of Rice

In News

Recently, the Ministry of Finance notified the slapping of a 20% duty on exports of rice “other than parboiled and basmati rice” with effect from September 9. 

• Also, the Directorate General of Foreign Trade (DGFT) in the Ministry of Commerce and Industry imposed a blanket ban on broken rice exports. 

Restrictions that have been put on rice exports

• 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.
• The curbs announced will affect just under half of India’s rice exports in terms of quantity and over a third by value.

Rationale Behind Government Ban of the Export

• The possibility of India’s rice production declining significantly because of deficient monsoon rainfall in Uttar Pradesh, Bihar, Jharkhand and Gangetic West Bengal. 
• The stocks for rice, at 40.99 mt, was quite comfortable, but the government is worried about their depletion in the event of a sub-par kharif harvest. 
  • This is more so, given the political pressure to continue the free-foodgrains scheme (Pradhan Mantri Garib Kalyan Anna Yojana) beyond September. 
• India has a 40% share of the world’s total rice exports.

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.

Source: IE