SEA Wants Export Ban On De-Oiled Rice Bran Lifted

Solvent Extractors' Association of India has requested ministers Piyush Goyal and Parshottam Rupala not to extend export ban on De-oiled Rice Bran beyond 31st March, 2024

Ajay Jhunjhunwala, President, SEA

FinTech BizNews Service   

Mumbai, March 4, 2024: Solvent Extractors’ Association of India has sent a Memorandum to Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Parshottam Rupala, Minister of Fisheries, Animal Husbandry and Dairying, requesting them to lift the export ban on De-oiled Rice Bran and not to extend ban beyond 31st March, 2024.

Ajay Jhunjhunwala, President, SEA has stated in a statement: “It is crucial to note that the total export of DORB constitutes only around 6% of the production, and its restriction has adversely affected processors and exporters along with paddy farmers, hindering them from realizing better returns on their produce.”

Moreover, the industry benefits from the export of DORB, as easy clearance of meal leads to sustained processing, leading to better capacity utilization, continuous oil availability, increased employment, and significant value addition along with valuable foreign exchange. India over the last 30 years has successfully developed this export market for DORB, primarily serving Vietnam, Thailand, Bangladesh and other Asian countries, positioning us as a reliable supplier in the international market. An abrupt change in export policy has given opportunity to our competing countries like Sri Lanka, Bangladesh to capture Vietnam market for De-oiled Rice Bran and will be lost in no time.

Eastern states including West Bengal, are significant producer of DORB, the cattle feed industry remains underdeveloped in this part of the country and there is limited demand for DORB in Eastern India. The exorbitant local freight charges to move DORB from Eastern India to South or West India makes export the principal means of disposal for DORB in the region. Since export is banned, Rice Bran processors in Eastern India facing the prospect of shutting down their operations, adversely impacting the rice milling industry and reducing Rice Bran Oil production.

It is pertinent to mention here that this export restriction on DORB was imposed since July 2023 to ease the milk prices, however, we have seen almost no reduction in milk prices across the country since this ban. This is because the cost component of DORB in milk price is very nominal.  SEA is still of the view that continuing this ban will not support reduction in milk prices but will continue to negatively impact the Rice Bran processors and DORB exporters. With the commencement of new season from November 2023 onwards, processing of Rice Bran has picked up and availability of DORB has greatly improved which is evident from the reduction of price from Rs18,000 per ton on 28th July 2023 (date of issuing notification) to Rs12,500 per ton at present. 

“In view of the above facts and sharp fall in price of DORB, we request the Government to kindly lift the ban imposed on export of DORB. We also emphasize that restriction imposed should not extend beyond 31st March 2024,” adds Ajay Jhunjhunwala.

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