Export Policy
Solvent extractors' body urges govt to lift ban on de-oiled rice bran export
This story was originally published at 15:48 IST on 16 April 2025
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MUMBAI – The Solvent Extractors' Association of India has urged the government to lift the ban on export of de-oiled rice bran, citing significant economic and industry-wide repercussions. De-oiled rice bran is a by-product of rice milling and it serves as a crucial ingredient in animal feed, particularly for cattle and poultry. It has been under an export ban since July 2023. In February, the restriction was extended to September 2025.
The association has appealed to the prime minister and key ministers, urging swift reconsideration of the policy to safeguard industry health and India's position in global markets.
India had built a strong market in countries like Vietnam, Thailand, and Bangladesh for de-oiled rice bran. The country is now rapidly losing its market share to competitors due to the prolonged ban. "The sudden export ban has allowed competing countries to step in, threatening India's established position as a reliable supplier," the association said in a press release.
"There is no shortage of rice bran in the country. The feed industry can produce as much as de-oiled rice bran as required. The (export) ban has discouraged investment and enhanced wastage of rice bran in the country," the association further said.
Eastern states such as West Bengal and Odisha are key producers of de-oiled rice bran, but there is lack of sufficient local demand. The current ban has also led to stockpiling, reduced production, and plant shutdowns, resulting in job losses and economic strain, the association further said. With high transportation costs making domestic redistribution unfeasible, exports remain the only viable outlet.
"India has a surplus of 1.3 million tonnes of rice bran after meeting 100% requirement of all feed mills in India, leading to waste and the country losing INR 6.5 billion in revenue," the association said. India is wasting rice bran oil due to reduced demand in the country and no incentive to produce de-oiled rice bran. The country is also losing export opportunities and foreign exchange earnings, the association said.
Adding to the challenge is the growing use of distillers-dried grains with solubles, or DDGS, which has reduced domestic demand for de-oiled rice bran. The association said that lifting the export ban would not only ease disposal issues but also boost employment, generate foreign exchange, and ensure better utilisation of production facilities.
Enhancing export opportunities for de-oiled rice bran can provide additional income sources for farmers, improving their livelihoods. The agricultural sector's growth, driven by export demand, can lead to rural development and poverty alleviation. Exporting surplus material will help prevent unnecessary storage and potential environmental degradation from stockpiling, the association mentioned in the release. End
Reported by Anjali Lavania
Edited by Nishant Maher
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