Located in Asia, India is the leading rice exporter in the world. More than 150 countries around the world depend upon India for their rice needs and African countries specially rely on India for their rice imports owing to affordable prices.
Data suggest that approximately 70% of rice needs of African countries are met via rice imports from India and the blanket ban on the export of broken rice have made things difficult for the African nations.
The blanket ban on the export of broken rice have made African countries switch to non-basmati rice for meeting their domestic consumption needs and a look at the figures reveal the same. Data suggest that in the first couple of months of current financial year, non-basmati rice imports by African countries have witnessed a 35% YoY rise.
Demand from the international market have made the Government of India ponder in this regard and on 24th of May, 2023, it allowed exports of broken rice via G2G route to help countries struggling to meet their food security needs. Acting on the same, the MEA (ministry of external affairs) has forwarded a request from the ministry of industry and commerce for export of 290,000 tonnes of fully broken rice to Mali, a country in West Africa.
Statements by the Officials
A senior government official informed the press that Ministry of External Affairs (MEA) have forwarded a request for the export of 290,000 tonnes of fully broken rice.He believes the rice shipments to take place in a phased manner. “The quantity will be exported in two separate lots of 240,000 tonnes and 50,000 tonnes once the Directorate General of Foreign Trade (DGFT) examines the issue and announce the policy," the senior government official added.
Prior Broken Rice Shipments
The Government of India have already permitted a number of shipments of broken rice prior to this. To be precise, the GOI permitted 500,000 tonnes of broken rice to Senegal and 50,000 tonnes of broken rice to Gambia in April, before permitting 200,000 tonnes of the same variety to Indonesia.
India’s Broken Rice Affordable
Currently, Thailand’s 100% broken rice is being offered at $523 per tonne while the same variety is being offered by India at a much low cost. India’s 100% broken rice costs $425 per tonne after including the 20% export duty.
Talking of 5% broken rice, Pakistan, Vietnam and Thailand are offering the variety at a price range $488-492, $508-512 and $518 per tonne respectively, while the same variety is being offered by India at $468-$472 a tonne.
The Bottom Line
India has earned its name in the global rice market and owing to the affordable prices offered for different varieties of rice, countries around the world depend upon India for meeting their rice needs. Talking of price, African countries source 70% of the consumption needs by importing rice from India owing to affordable prices and in a latest development, India is likely to ship 290,000 tonnes of broken rice to Mali, a country in West Africa.
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