New Delhi, 7 March 2025 — The Indian government lifted the ban on exports of 100% broken white rice and removed the Minimum Export Price (MEP) requirements that had restricted outbound rice shipments, marking a significant liberalisation of one of the world's largest rice export regimes. The decision built upon the September 2024 lifting of the blanket ban on non-basmati white rice exports, which had been in place since July 2023.
The policy shift has major implications for global food security, as India is the world's largest rice exporter, accounting for roughly 40% of global rice trade. The 2023 export ban had sent shockwaves through international rice markets, driving prices to 15-year highs and disrupting supplies to dozens of import-dependent nations across Africa and Asia.
Timeline of India's Rice Export Restrictions
| Date | Policy Action | Impact |
|---|---|---|
| July 2023 | Blanket ban on non-basmati white rice exports | Global rice prices surge to 15-year highs |
| August 2023 | 20% export tax on parboiled rice | Further price pressure on global markets |
| September 2024 | Ban on non-basmati white rice lifted | Prices begin to stabilise |
| March 2025 | Ban on 100% broken white rice lifted; MEP removed | Full liberalisation of export categories |
| Late 2025 | Mandatory APEDA registration for export contracts | New oversight mechanism introduced |
The March 2025 Liberalisation
The March 2025 decision removed the last major export restrictions on non-basmati rice categories. The lifting of the ban on 100% broken white rice — a category primarily used for animal feed and industrial purposes in some markets but also consumed as food in parts of Africa — opened a significant export channel. The removal of the MEP, which had set a floor price for exports, allowed Indian rice to compete more freely on international markets.
The export surge has been particularly significant for African importers. Countries including Benin, Côte d'Ivoire, Senegal, and Togo rely heavily on Indian non-basmati rice, particularly broken rice varieties that are more affordable than whole grain alternatives. The 2023 ban had forced many of these nations to seek more expensive alternatives from Thailand, Vietnam, and Pakistan, straining already limited food security budgets.
Rationale for the Policy Shift
The Indian government's decision to liberalise rice exports was driven by several factors:
Improved Domestic Supply
India's rice production in the 2024–2025 agricultural year was robust, supported by favourable monsoon conditions and adequate reservoir levels. The Food Corporation of India held substantial rice stocks, well above buffer stock norms, providing confidence that domestic supplies would remain sufficient even with increased exports.
Price Stabilisation
With domestic rice prices having stabilised following the good harvest, the government determined that the export restrictions were no longer necessary to contain domestic inflation. The MEP, in particular, had been a tool to prevent domestic prices from rising due to export demand — a concern that diminished with the strong production outlook.
Trade and Diplomatic Considerations
The export ban had strained trade relations with several partner countries and had been a point of discussion in bilateral and multilateral trade forums. The liberalisation was welcomed by importing countries and seen as a positive step for global food security.
New Regulatory Framework
While liberalising exports, the Indian government also introduced a new regulatory mechanism to maintain oversight. In late 2025, mandatory registration of non-basmati rice export contracts with the Agricultural and Processed Food Products Export Development Authority (APEDA) was introduced. This requirement ensures that the government can monitor export volumes and intervene rapidly if domestic supply conditions deteriorate.
The APEDA registration system represents a shift from blunt instruments (blanket bans, export taxes) to more targeted monitoring tools. By tracking export contracts in real time, the government can identify potential supply risks earlier and implement more surgical interventions if needed.
Impact on Global Rice Markets
The lifting of restrictions has had a measurable impact on global rice prices. After surging to 15-year highs following the July 2023 ban, international rice prices declined steadily through late 2024 and 2025 as Indian supplies returned to the market. The FAO Rice Price Index, which had risen sharply in 2023, showed significant declines through 2025.
For importing countries, the return of Indian rice to global markets has provided relief:
- West Africa: Countries like Senegal, Côte d'Ivoire, and Mali, which import significant quantities of Indian broken rice, have seen improved supply and reduced prices
- East Africa: Nations including Kenya and Tanzania have benefited from more competitive pricing
- South Asia: Bangladesh and Nepal have accessed Indian rice at more favourable terms
Looking Ahead
The sustainability of India's liberalised export policy depends on continued favourable production conditions. The Indian Meteorological Department's monsoon forecasts for 2025–2026 will be critical, as below-normal rainfall could trigger renewed concerns about domestic supply and potentially lead to policy reversals.
The introduction of the APEDA registration mechanism suggests that the government is preparing for the possibility of needing to re-impose restrictions quickly. The system provides the infrastructure for rapid policy adjustment without resorting to blanket bans — a more sophisticated approach that could serve as a model for other major food exporters.
For now, the liberalisation represents a positive development for global food security, restoring a critical source of affordable rice to import-dependent nations and contributing to the stabilisation of international grain markets.
Sources
- S&P Global Commodity Insights, "India lifts ban on 100% broken white rice exports," March 7, 2025
- Indian Rice Exporters Federation (IREF), export projections for MY 2025–26
- Agricultural and Processed Food Products Export Development Authority (APEDA), 2025
- FAO Food Price Index reports, 2025
- Tradologie, "India's rice export surge in 2025," 2025
- Vajiramandravi Current Affairs, "India's rice export surge after lifting curbs," 2025
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Institutional Research Desk · Foresight Institute of Research and Translation
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