Published date:
30/01/2026
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On September 8, 2022, the Directorate General of Foreign Trade of India issued Notification No. 31/2015-2020, deciding to ban the export of broken rice, HS code 1006 40 00, effective from September 9, 2022.
Certain shipments may continue to be exported until September 15 if they satisfy one of the following conditions: (i) the cargo had commenced loading onto the vessel before this notification was issued; (ii) the bill of lading had been issued and the vessel had berthed or anchored at an Indian port with a designated loading sequence number assigned; or (iii) the shipment had been handed over to Customs before the notification and had already been registered in the Customs system.
In addition, on September 8, 2022, the Ministry of Finance of India issued Notification No. 49/2022-Customs imposing a 20% export duty on certain rice products, including paddy rice (HS 100610), brown rice (HS 100620), and other rice varieties excluding parboiled rice and Basmati rice (HS 10063090). The decision took effect from September 9, 2022.
Several exporters stated that the government’s decision was too sudden and created difficulties for signed contracts. Buyers could not afford an additional 20% increase in shipment costs, while sellers were also unable to bear the additional 20% export duty. Mr. V.K Rao, president of the Rice Exporters Association of India, said: “The government’s move will push global rice prices higher. Export prices for white rice could exceed USD 400 per ton compared to the current USD 350 per ton on an FOB basis.”
Indian exporters are expected to request tax exemptions for approximately 2 million tons of rice that had already been contracted for export but had not yet been shipped.
India’s move to restrict rice exports is expected to create upward pressure on global rice prices. At the same time, the ban on broken rice exports, which is widely used as raw material for animal feed production, is likely to increase feed prices, especially in major importing markets such as China, which imported 1.1 million tons in 2021, and Vietnam, which imported 433 thousand tons in 2021.
In 2021, India exported 21.5 million tons of rice, exceeding the combined total exports of the four major rice exporters: Thailand, Vietnam, Pakistan, and the United States.
The Vietnam Trade Office in India has recommended that Vietnamese businesses that signed contracts with Indian partners should promptly contact sellers to verify shipment status and renegotiate contracts for shipments that have not yet been exported.
India imposes export duties and bans exports of certain rice varieties
>> See more: EU “hungry” for wood pellets to replace gas, Vietnam’s export prices double
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