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Govt further extends deadline for broken rice export in-transit before ban

Broken rice is mainly exported to China, Indonesia, Vietnam, and Djibouti.

Govt further extends deadline for broken rice export in-transit before ban

The central government, on Tuesday, further extended the deadline to October 15 for the in-transit stock of broken rice. The Centre had imposed a ban on the export of broken rice, effective from September 9. The notification regarding the ban was issued on September 8, which mentioned that certain broken rice shipments will be immune to the ban during the period September 9 to September 15. The deadline for the same was recently extended to September 30. Now in a notification issued by the Directorate General of Foreign Trade, the deadline has seen an extension of 15 days. The notification comes into force with immediate effect.

Broken rice is mainly exported to China, Indonesia, Vietnam, and Djibouti. The crop is used for consumption by domestic poultry, which was a contributing factor to the imposition of ban. In addition, the usage of broken rice in the Ethanol Production also prompted the government to tackle the supply constraints. The central government is eyeing a smooth functioning of the Ethanol Blending Programme to achieve the blending targets (20 per cent blending of ethanol in petrol, for instance) by 2025-26.

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The government, while imposing a ban on broken rice, also levied a 20 per cent export duty on non-basmati rice in efforts to boost domestic supplies. Parboiled rice was excluded from the provision. The 20 per cent duty imposed on the non-basmati rice, along with the broken rice export ban, was the result of depleting area under paddy crops and a stunted crop production.

As per the data released by the Ministry of Agriculture and Farmers Welfare on September 23, Rice witnessed a decrease of 23.44 lakh hectares. The data mentioned that roughly 401.56 lakh hectares of land coverage under rice was reported compared to last year’s 425 lakh hectares. The production of rice is expected to incur some impact from the deficiency of monsoon rainfall in the key rice growing states such as Bihar, Uttar Pradesh, Jharkhand, and West Bengal, which is the largest producing state in the country. The food ministry, however, assured that the domestic price of rise is under control due to surplus stock of the crop.

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