Government Extends Ban on De-Oiled Rice Bran Exports

Government Extends Ban on De-Oiled Rice Bran Exports

VoM News Desk | March 16, 2024 | 03:32 PM IST | India, World | Follow on Google News

Government Extends Ban on De-Oiled Rice Bran Exports

Government Extends Ban on De-Oiled Rice Bran Exports

The central government has prolonged the prohibition on exports of de-oiled rice bran for an additional four months, as stated in an official notification released by the Directorate General of Foreign Trade (DGFT) dated March 15. Initially implemented in July 2023 for a four-month period, the ban was subsequently extended until March 2024.

Addressing Inflation Concerns

The extension of the export ban on de-oiled rice bran aims to tackle inflationary pressures, particularly in milk prices. De-oiled rice bran, a derivative of rice bran widely utilized as a nutritional supplement for livestock and other animals, plays a crucial role in the edible oil industry.

Industry’s Appeal for Relief

The Solvent Extractors Association Of India (SEA) has urged the government to revoke the ban on de-oiled rice bran exports. In a communication to the central government, SEA emphasized that the export restriction has adversely impacted processors, exporters, and paddy farmers, depriving them of lucrative returns on their produce.

Market Dynamics at Play

India has nurtured a robust export market for de-oiled rice bran over the past three decades, catering primarily to countries such as Vietnam, Thailand, and Bangladesh. However, the sudden policy shift has prompted competing nations like Sri Lanka and Bangladesh to seize opportunities in the Vietnam market, potentially eroding India’s market share.

Reassessment of Impact

Despite the government’s rationale for the export ban, SEA contends that the restriction has not resulted in any significant reduction in milk prices nationwide. The association asserts that the negligible cost component of de-oiled rice bran in milk production undermines the efficacy of the ban as a measure to mitigate inflation in milk prices.

Way Forward

As stakeholders voice their concerns and appeals, the government faces the task of balancing the objectives of price stabilization and fostering a conducive environment for agricultural and industrial sectors. The ongoing discourse underscores the need for a comprehensive assessment of policy measures to ensure the welfare of all stakeholders involved.

VoM News Desk

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