More Stories

Informist, Friday, Aug 2, 2024

 

By Afra Abubacker

 

MUMBAI – The government is likely to extend the ban on exports of de-oiled rice bran, which expired Wednesday, Sushil Kumar Agarwal, chairman of Solvent Extractors' Association of India (East Zone) said. "Any moment the notification (extending the ban) can come... it's just a matter of time," Agarwal told Informist.

 

Citing the rise in dairy prices, the government had banned the export of de-oiled rice bran in July 2023. Since then, it has been extending the ban, with the latest extension having expired on Wednesday. 

 

SEA Executive Director B.V. Mehta said that there is confusion in the industry as the government is yet to announce its trade policy on de-oiled rice bran. "I have mailed the Ministry of Commerce asking for clarification," Mehta said. 

 

De-oiled rice bran, obtained after the extraction of oil from rice bran, is an important ingredient for cattle, poultry, and pig feed. However, as per the SEA, de-oiled rice bran has no direct correlation with dairy products. Since the export ban, de-oiled rice bran prices have declined from 18 rupees per kg to 15 rupees per kg. However, milk prices have not seen any decline, Agarwal said. 

 

The dairy industry is concentrated in Gujarat and Maharashtra, and West Bengal is the only state that exports de-oiled rice bran, Agarwal said. The eastern state is a significant producer of de-oiled rice bran. But with an under-developed local cattle feed industry, the state ships most of the cattle feed to Vietnam, Cambodia, and Thailand. India annually exports 500,000-600,000 tn of de-oiled rice bran. 

 

However, de-oiled rice bran being the cheapest de-oiled cake has high demand and can marginally pull up the prices of the de-oiled cake basket across India. 

 

While de-oiled rice bran costs 15 rupees per kg, mustard de-oiled cake is priced at 21 rupees, and soy de-oiled cake at 40 rupees per kg, Agarwal said. Prices of these different cattle feedstock vary according to their protein content, he added. 

 

Pointing out that India exports soymeal and mustard meal, Agarwal said, "It is a matter of surprise why the government is only concerned about de-oiled rice bran exports."  End

 

Edited by Tanima Banerjee

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.