The government should reconsider its decision on banning the export of de-oiled rice bran as the move is likely to have minimal impact on the prices of cattle feed and milk, industry body SEA said on Tuesday.
On July 28, the Director General of Foreign Trade (DGFT) issued a notification prohibiting the export of de-oiled rice bran till November.
“This decision could have far reaching negative consequences for domestic rice bran processor industry and export of de-oiled rice bran. We have urged the government to reconsider the issue,” Solvent Extractors Association of India Executive Director B V Mehta said in a statement.
A representation in this regard has been made to Commerce and Industry Minister Piyush Goyal, Agriculture Minister Narendra Singh Tomar and Fisheries, Animal Husbandry and Dairying Minister Parshottam Rupala, he said.
The industry body also stressed that any restriction imposed should not extend beyond November 30, considering that the new season will commence in mid-October.
SEA, in its representation, said the industry understands that the rising prices of milk and milk products as the reason for the export restriction, attributing it to the high fodder prices, with de-oiled rice bran being a major component. “However, we respectfully disagree with this notion.” The industry body said cattle feed would experience only a marginal decrease in cost even if the price of de-oiled rice bran is reduced by 10 per cent.
“The impact on milk prices would consequently be minimal, likely not exceeding a 1 per cent reduction.” Also, total export of de-oiled rice bran constitutes less than 10 per cent of the production, and its restriction could adversely affect paddy farmers, hindering them from realising better returns on their produce, the SEA said.
Over the years, India has successfully developed an export market for de-oiled rice bran, primarily serving Vietnam, Thailand, Bangladesh and other Asian countries, positioning itself as a reliable supplier in the international market, it said.
“An abrupt change in export policy risks damaging this hard-earned market standing,” it added.
Further, the industry body mentioned the cattle feed industry remains underdeveloped and eastern states, including West Bengal, are major producers of rice bran extraction.
There is a limited demand for rice bran extraction in eastern India. If exports are halted, rice bran processors in eastern India will face the prospect of shutting down their operations, adversely impacting the rice milling industry and reducing rice bran oil production, it said.