India’s Plan to Cut Broken Rice Percentage: A Game-Changer in Food Inflation Battle
Credit: Mint News
04.05.2024: Amidst concerns over food inflation, especially during the ongoing general elections, India is devising plans to slash the proportion of broken rice in its non-basmati rice exports. This move aims to stabilize domestic prices and ensure ample supplies amidst escalating costs.
Currently, non-basmati white and parboiled rice exports allow up to 25% broken rice. However, the government is considering reducing this allowance to a mere 5%. This strategic shift could play a crucial role in mitigating price hikes, according to a senior official familiar with the matter.
Despite earlier measures such as the introduction of Bharat rice, increased stock disclosures, and export restrictions, prices have continued to surge. Consumer affairs ministry data indicates that retail rice prices stand at ₹44.40 per kg, reflecting a 13.10% year-on-year increase as of the latest update.
Although food inflation showed slight relief in March, rice inflation remained notably high at 12.7%. This persistent pressure has prompted authorities to explore new interventions to stabilize the market dynamics.
The Directorate General of Foreign Trade (DGFT) currently sets the broken percentage at 15% for parboiled rice exports. However, discussions are underway to lower this to 5% for export consignments, aligning with the proposed changes in non-basmati white rice exports.
In terms of non-basmati white rice, the current broken percentage allowance stands at 25%. Proposed modifications would reduce this to 5%, thereby enhancing quality specifications for export shipments.
It’s important to note that the broken rice percentage in exports varies based on importing countries’ requirements. For instance, African nations typically accept non-basmati white rice with a 25% broken percentage, while the US prefers a much lower range of 2-3%.
Interestingly, around 90% of parboiled rice exports already adhere to the proposed 5% broken percentage limit, showcasing a prevailing trend towards higher quality standards.
In essence, reducing the broken percentage in rice exports not only addresses quality concerns but also has the potential to influence pricing dynamics positively.