The Magazine for Asian Investors
The Indian government and industry officials said Friday (Aug. 26) that India, the world’s largest rice exporter, is considering limiting exports of 100% broken rice after rice acreage declined due to a “drug-free” crisis with insufficient rainfall.
India’s tendency to limit rice exports could cause global rice prices to skyrocket. This is because India exports more than 40% of its rice to the world market, which could affect poor African countries that import 100% of their broken rice for consumption. Most of the time, broken rice is used for feed purposes.
A senior official said, “We have discussed whether it is necessary to limit exports of 100% broken rice.” This is a consideration of limiting exports of 100% broken rice and not considering the overall control of rice exports.
The latest talks on export restrictions for rice come after India saw below-average rainfall in key rice-growing areas such as West Bengal, Bihar, and Uttar Pradesh.
India’s Ministry of Agriculture reported last week that Indian farmers planted 34.37 million hectares of rice, down 8.3% from the previous year.
India exported 21.5 million tons of rice in 2021, including 3.6 million tons of broken rice.