Granaries Overflowing: India’s Broken Rice Export Ban at a Crossroads

India’s rice industry is pushing the government to resume exports of 100% broken rice, citing record stockpiles that far exceed domestic needs. State granaries held 67.6 million metric tons of rice as of February 1, nearly nine times the official target of 7.6 million tons, following a bumper harvest. The Rice Exporters’ Association (REA) argues that lifting the ban—imposed in 2022 due to monsoon-related production fears—would alleviate storage pressures while aiding global markets. African nations like Senegal and Djibouti, which rely on affordable broken rice for food, and Asian buyers using it for animal feed and ethanol production, stand to benefit. However, the government has yet to respond to the REA’s appeal, leaving traders in limbo.

The export ban, initially enacted to safeguard domestic supply after erratic rainfall, has become obsolete amid surplus yields. While India relaxed restrictions on other rice grades in 2023, broken rice remains prohibited despite its critical role in global trade. Before the ban, India shipped 3.9 million tons of broken rice annually, primarily to China and Africa. Proponents stress that resuming exports would stabilize prices for low-income importers and bolster India’s competitiveness against rivals like Vietnam, Thailand, and Pakistan. Yet, policymakers remain cautious, wary of repeating past supply crunches that triggered inflationary spikes.

The decision carries broader implications for food security and trade dynamics. Sustained export curbs could drive buyers to alternative suppliers, eroding India’s market share. Conversely, reopening trade might strain domestic prices if stocks deplete faster than anticipated. With global rice demand rising, particularly for ethanol and livestock feed, India’s move could either ease food insecurity in vulnerable regions or reignite debates over balancing national reserves with export opportunities. As the government weighs these stakes, the industry warns that delayed action risks ceding ground to competitors while leaving overflowing granaries underutilized.