China takes over as biggest importer of Indian broken rice

China is now the top buyer of Indian broken rice, which was earlier exported mostly to African countries.

China emerged as the top buyer of Indian rice during the pandemic, with the neighbouring country importing 16.34 lakh metric tonnes (LMT) — or 7.7 per cent — of India’s total rice export of 212.10 LMT in financial year 2021-22, according to an analysis of trade data.

The analysis shows that out of China’s total rice import from India of 16.34 LMT, nearly 97 per cent, or 15.76 LMT, was broken rice, which has seen a spike in demand from that country.

In fact, China is now the top buyer of Indian broken rice, which was earlier exported mostly to African countries.

In 2021-22, India’s total rice exports — both basmati and non-basmati — was 212.10 LMT, which is 19.30 per cent higher than 177.79 LMT exported in 2020-21. In the same period, rice export to China jumped by 392.20 per cent: from 3.31 LMT to 16.34 LMT.

Of India’s total rice export in 2021-22, basmati rice accounted for 39.48 LMT, which was 14.73 per cent lower than 46.30 LMT exported in 2020-21.

Non-basmati rice accounts for the lion’s share in the basket of Indian rice exports. During 2021-22, export of rice other than basmati was 172.62 LMT, which was 31.27 per cent higher than 131.49 LMT in 2020-21.

During 2021-22, India exported 38.64 LMT of broken rice to 83 countries; of this, maximum 15.76 LMT was procured by China — 476.40-per cent up from 2.73 LMT in 2020-21.

Trade experts say the reason for this increase in export of broken rice to China is the higher demand of rice for making noodles and wine in that country.

Vijay Setia, former president of All India Rice Exporters Association, said, “China is buying mainly broken rice, which is converted to make wine and noodles.”

He said China had sent a delegation to India before the outbreak of Covid-19 and that delegation visited several rice mills.

Experts say another reason for this increase in demand could be rising prices of corn. The demand for broken rice has seen a spike at a time when prices of food items have registered an increase globally in recent months, particularly after Russia’s invasion of Ukraine.