India may reimpose broken rice export restrictions as prices cross $360 per tonne: IREF
India may reimpose restrictions on exports of 100% broken rice as international prices cross $360 per tonne and domestic demand from ethanol manufacturers and poultry-feed producers increases, the Indian Rice Exporters' Federation (IREF) has warned. No fresh curbs have been announced so far.
The Indian Rice Exporters Federation (IREF) has cautioned that India may reintroduce export restrictions on 100% broken rice as global prices surpass $360 per tonne. This comes as domestic competition from sectors such as ethanol production and poultry feed raises concerns about supply and price stability. Rising wholesale prices for broken rice, up 5.3% to Rs 3,036 per quintal as of November 2, contrast with a 4.37% year-on-year increase in the Wholesale Price Index.
Vinod Kaul, IREF's Director General, notes that the surge in international prices merits scrutiny due to broken rice's crucial role in various industries. He emphasizes the potential for export restrictions if the trend persists, particularly as Assembly elections in five states are scheduled for 2027. The government's history of intervening in rice trade to protect domestic availability, most recently in September 2022, suggests the possibility of such measures again.
While India's overall rice supply appears robust, with production projected at 154.02 million tonnes for 2025-26, the specific availability of broken rice is more volatile. The upcoming state elections in Uttar Pradesh, Punjab, Uttarakhand, Goa, and Manipur could heighten political sensitivity towards inflation, potentially amplifying the government's focus on domestic supply stability.
IREF advises caution among exporters and urges the government to engage with industry stakeholders before implementing any new restrictions, emphasizing the importance of maintaining fair policies that protect existing commitments to global rice markets.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
