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India Expected To Ship 290,000 Tonnes Of Broken Rice To Mali.
Jul 05, 2023

India is expected to send 290,000 tonnes of fully broken white rice to Mali, a country in West Africa, through government-to-government (G2G) channels. This decision follows India's recent authorisation in May to allow the export of fully broken white rice, which had been banned since September of the previous year, to other nations in order to fulfil their food security requirements.

A senior government official stated that the Ministry of External Affairs (MEA) had received a request from the Minister of Industry and Commerce to export 290,000 tonnes of fully broken rice. The shipment will be divided into two separate batches of 240,000 tonnes and 50,000 tonnes, pending examination and policy announcement by the Directorate-General of Foreign Trade (DGFT).

This development comes in response to the demand from African countries, which rely on India for their supply of fully broken white rice, in addition to parboiled rice. In April, the Indian government permitted the export of 500,000 tonnes of broken rice to Senegal and 50,000 tonnes to Gambia. It also authorised the export of 200,000 tonnes of this rice variety to Indonesia.

African nations depend on India for rice imports due to the more affordable prices compared to offerings from Vietnam, Thailand, or Pakistan. Thailand is currently selling 100 per cent broken rice for USD 523 per tonne, while India offers the same variety at USD 425 per tonne, which serves as the benchmark price in the global market. The Indian price includes a 20 per cent export duty. For 5 per cent broken rice, India offers it at USD 468-USD 472 per tonne, while Pakistan, Vietnam, and Thailand offer it at USD 488-492, USD 508-512, and USD 518 per tonne, respectively. The three countries are selling 25 per cent broken rice within the range of USD 458-498, whereas India quotes this variety at USD 448-452 per tonne, according to spot trade sources. These prices are free-on-board (FOB).

Due to the export ban on fully broken rice, Indian exporters have been unable to sell it in the international market. However, on 24 May, the Indian government allowed the export of broken rice following requests from foreign ministries seeking to meet their food security needs, despite the general ban on broken rice exports. This step was taken in response to the increasing requests received by the Indian government.

Since the ban on fully broken rice exports was imposed in September 2022, African nations, which rely on India to meet 70 per cent of their rice consumption, have turned to non-basmati rice. In the first two months of the current fiscal year, African countries' imports of non-basmati rice have increased by 35 per cent compared to the same period last year, reaching nearly 2.1 million tonnes, as reported by Vinod Kaul, Executive Director of the All India Rice Exporters' Association.

From April to May of FY24, India's basmati rice exports increased by 21 per cent compared to the previous year, reaching 830,858 tonnes. Non-basmati rice exports also saw a year-on-year increase of 6.1 per cent to reach 2.8 million tonnes.

In FY23, India exported a total of 17.79 million tonnes of non-basmati rice, while broken rice exports were 23 per cent lower at 3 million tonnes due to the ban imposed to stabilise domestic prices.

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