The government of India has prolonged the prohibition on de-oiled rice bran exports for an additional four months, as stated in an official announcement released by the Directorate General of Foreign Trade (DGFT) dated March 15.
Initially implemented in July 2023 for a period of four months, the export ban on this derivative of rice bran was later extended until March 2024.
This decision appears to have been made in response to the rising milk prices. De-oiled rice bran, extracted from rice bran, is commonly utilised as a nutritional supplement for feeding livestock and other animals.
The Solvent Extractors Association Of India (SEA), representing the edible oil industry, has recently urged the government to lift the export ban on this derivative. In a communication to the central government, it contended that the total export volume of DORB accounts for approximately 6% of the production, and its restriction has had adverse effects on processors, exporters, and paddy farmers, impeding their ability to obtain better returns on their crops. According to the industry body, India has successfully cultivated an export market for DORB over the past three decades, primarily catering to Vietnam, Thailand, Bangladesh, and other Asian nations.
SEA asserted in its letter that the sudden change in export policy has provided an opportunity for competing countries such as Sri Lanka and Bangladesh to seize the Vietnam market for de-oiled rice bran, potentially leading to a loss of market share, according to Free Press Journal.
The letter further highlighted that despite the export restrictions on DORB since July 2023 aimed at lowering milk prices, there has been little to no reduction in milk prices nationwide. This is attributed to the fact that the cost contribution of DORB to milk prices is minimal.
(Finance World and The Free Press Journal have published the article under a mutual content partnership arrangement.)