India allows broken rice exports backed by already issued LCs

India will allow shipments of 397,267 tonnes of overseas broken rice backed by letters of credit (LCs) issued before September 8, the government said in a notification on Wednesday, as a sudden ban on export of grains prevented loading of the cargo. Gave.

On September 8, India banned the export of broken rice as the world’s largest grain exporter tries to boost supplies and calm local prices after below-average monsoon rains.

The surprise move resulted in the stranding of nearly one million tonnes of rice that was transported to ports or was in transit before it was announced by the government.

Rice Exporters Association president BV Krishna Rao said allowing exports against the already issued LCS would help traders as a lot of cargo was stuck and buyers were requesting speedy dispatch.

He said that for many low-income African countries, buying from other suppliers meant paying a ‘very high price’.

‘Indian broken rice was at least 30% cheaper than other origins,’ he said.

China was the largest buyer of Indian broken rice in 2021 with purchases of 1.1 million tonnes – which it uses for animal feed, while African countries such as Senegal and Djibouti bought broken rice for human consumption.

India accounts for over 40% of global rice shipments and competes with Thailand, Vietnam, Pakistan and Myanmar in the world market.

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