Miller Magazine Issue: 154 October 2022

38 MILLER / OCTOBER 2022 NEWS On September 9, 2022 India prohibited the exportation of 100 percent broken rice, which will have a significant impact on global rice trade. India, the largest rice exporter, implemented policies on Sep- tember 9 to restrict its exports. The government imposed a ban on exports of 100 percent broken rice and also is applying a 20 percent tariff on paddy, brown, and white rice that is nei- ther basmati nor parboiled rice. This is the first restriction that India has placed on its exports since it lifted its 3-year ban on non-basmati rice in 2011. Since that time, India has become the primary rice exporter, expanding its domination so that in 2021, India accounted for 41 percent of total global exports, larger than the next 4 exporters (Thailand, Vietnam, Pakistan, and the United States) combined. For 2022, global rice trade is estimated to contract, in part due to the new Indian policy to ban exports of broken rice. In 2021, global broken rice trade was up 53 percent reaching 6.7 million tons. So far, for the first half of 2022, broken rice exports are at 4.8 million tons, up 39 percent compared to the same period in 2021. India’s new policy will eliminate this trade, which was more than half of global broken rice trade. Prior to 2021, broken rice contributed roughly 10 percent of total rice exports. For the first half of 2022, broken exports accounted for nearly 20 percent. The rising demand began during India’s record high exporting year with low-cost rice and an abundant supply. India’s largest markets have been China, Senegal, and Vietnam. Historically, Senegal has been the largest destination for In- dia broken rice and continues to be a key market but has fallen from the top spot. Senegal uses broken rice for one of its staple dishes. However, since 2021, China and Vietnam have bought significant volumes of broken rice. China (the world’s largest producer) continues to be the largest rice importer and has shifted to purchasing more broken rice for animal feed. On September 9, 2022 India prohibited the exportation of 100 percent broken rice, which will have a significant impact next year. Key India broken rice importers, such as China, Viet- nam, and Senegal, are expected to import less in 2023 due to the recent ban. While India exports are expected to drop, Paki- stan, Vietnam, Thailand, and Burma have the potential to offset some of India’s decline. India’s ban on broken rice exports to disrupt global market