Centre Lifts Ban On Export Of De-Oiled Rice Bran

(MENAFN- Live Mint)

In a major development, the Union government has lifted the ban on the export of de-oiled rice bran, effective immediately. The move is expected to benefit the rice milling and solvent extraction industry by opening export opportunities. It will also benefit farmers and enhance rice bran processing, resulting in increased production of rice bran oil and import substitution.

According to a notification dated 3 October, by the Directorate General of Foreign Trade (DGFT), the export policy of de-oiled rice bran has been changed from 'Prohibited' to 'Free' with immediate effect.

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The export of de-oiled rice bran has been in force from 28 July 2023 till 30 September 2025. According to the industry, prior to the ban, India used to export five to six lakh tonnes of de-oiled rice bran, valued at ₹1,000 crore per annum, mainly to Vietnam, Thailand, and other Asian countries. India was positioned as a reliable supplier in the international market. The lifting of the ban is expected to benefit the industry, farmers, and India's agri-trade.

“We sincerely appreciate the proactive intervention of the government in addressing this long-pending demand of the industry," said Sanjeev Asthana, president, The Solvent Extractors Association of India (SEA).

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The move is expected to benefit the rice milling and solvent extraction industry, particularly in eastern India, with the opening of export opportunities, while also aiding farmers and processors in securing better realisation for by-products of rice bran.

“Once again, this will absolutely help boost India's agro-processing exports and strengthen the country's reputation as a reliable supplier to global feed markets," adds Dr B.V. Mehta, ED, SEA.

Industry concerns, impact of earlier ban

In a letter to Prime Minister Narendra Modi and other relevant ministries on 28 August, SEA expressed concern that the prices of de-oiled rice bran would further decline if exports were not permitted. On 28 August, the prices of de-oiled rice bran were reported to be as low as ₹10,000 to ₹11,000 per tonne, according to SEA.

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After covid ended in the latter half of 2022, market demand for all commodities went up sharply due to pent-up demand and factors like logistics, production disruption, etc. Furthermore, pressure on the supply chain resulted in higher prices of all food grains, pulses, metals, chemicals, and all commodities across the chain. Even housing demand rose sharply, accompanied by a significant increase in prices. The original objective of the export ban was to control rising feed costs and stabilise milk prices.

However, according to SEA, the ban has led to severe economic and operational setbacks across the value chain, especially for those associated with the rice milling and rice bran extraction sector, as the prices of meal nosedived.

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