Day later, govt flags dip in rice yield

Vibha Sharma

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New Delhi, September 9

A day after the ban on the export of broken rice to increase domestic availability, the government today said kharif rice production could fall by 10 to 12 million tonne this season due to poor rain in some places and factors such as diversification.

20% export duty

• Broken rice: Export prohibited with immediate effect
• Non-basmati (others), rice in husk (paddy/rough), husked (brown): 20% export duty with immediate effect
• Parboiled/basmati: No change

Food Secretary Sudhanshu Pandey said there were four affected drought states which translated into seven-eight million tonne less production. “There are other states which have less area under paddy, not due to deficit rainfall but factors such as crop diversification. Total rice sowing is less by 38.06 lakh hectare and loss of rice production may be 10 million tonne. In the worst-case scenario, it can be 12 million tonne due to a variety of factors,” he said. “However, with exports of 212 LMT last year, we can say that India is still surplus in rice. It is early to say how much production will be affected due to poor rain,” he said, adding that places with surplus rain might see more yield to compensate for the losses.

The preliminary estimate today is the first official confirmation of the impact of poor monsoon on production in Uttar Pradesh, Bihar, Jharkhand and West Bengal. After imposing 20 per cent export duty on non-basmati rice, the government yesterday banned the export of all forms of broken rice with immediate effect to cool prices. Pandey said domestic wholesale and retail prices of rice were showing an increasing trend along with cattle feed stock prices. While maize prices increased from Rs 19/kg (January 1) to Rs 24/kg (September 8), broken rice increased from Rs 16/kg (January 1) to Rs 22/kg (September 8).

Terming the increase in export of broken rice “exponential and abnormal”, Pandey said from April to August, the export of broken rice increased by 4,178 per cent as compared to the corresponding period of 2019.

Broken rice is largely used as a feed meal in the poultry industry.

The largest importer from India is China, followed by Senegal, Vietnam, Djibouti and Indonesia.

While the ban on broken rice has come into effect from September 9, the notification says that between September 9 and 15, consignments and shipments — for which loading began in ports and shipping bills of vessels berthed have been filed or where broken rice consignments have been handed over to the Customs before the ban — will be allowed to be exported.

The Centre imposed a 20 per cent export duty on select rice varieties but kept major items like basmati out of its purview.