Curbs On Farm Products Exports To Bhutan Lifted

Curbs On Farm Products Exports To Bhutan Lifted

On Friday, October 3, the government lifted a two-year ban on farm products exports such as de-oiled rice bran, used as cattle feed. India had imposed a temporary ban on farm products exports such as de-oiled rice bran (DORB) from August 2023, and the move was intended to increase domestic feed supplies while curbing cattle feed costs, which were associated with rising milk prices.

The Directorate General of Foreign Trade (DGFT) stated in a notification that the export policy of de-oiled rice bran is hereby amended from prohibited to free with immediate effect.

Lifting the ban on farm products exports is beneficial for the domestic industry

Lifting the ban on farm products exports will benefit the rice milling and solvent extraction industry, especially in eastern India, with the opening of export opportunities, while also facilitating farmers and processors in securing better realisation for by-products of rice bran, as stated by BV Mehta, executive director, Solvent Extractors Association of India (SEA)

The Solvent Extractors Association of India (SEA) had appealed to the government to lift the ban on exports to protect domestic processors and enhance farmers’ income earlier. Before the imposition of restrictions, India exported 0.5 – 0.6 MT of DORB annually, valued at Rs 1,000 crore, mostly to Asian countries.

According to industry sources, since the restrictions on exports, the importers to shifted to alternative protein sources like maize, Distillers Dried Grains with Solubles (DDGS), and rice in countries such as Sri Lanka, Bangladesh, and Nigeria.

According to a DGFT notification, the government has eliminated restrictions on dairy & farm products to Bhutan. At the same time, the government exempted applicable restrictions and prohibitions for agricultural commodities like dairy goods, onions, potatoes, certain vegetables, rice, and wheat in Bhutan. Notably, these exemptions are also on various commodities, including tea, soybean oil, groundnut oil, palm oil, animal, vegetable fats and oils, Cane or beet sugar, and salt. India had curbed exports of wheat and atta, ensuring a comfortable supply in the domestic market, but has made an exception for Bhutan. Moreover, Govt removes the exemption requirement for non-basmati & basmati rice to EU members till April 2, 2026.