India, March 12 -- Chandigarh

The Director General of Foreign Trade's (DGFT) recent decision to allow the export of broken rice is seen as a vital step in tackling the storage issues plaguing producer states, including Punjab.

DGFT, the licencing authority for exporters, importers and export and import businesses in India, in a notification on 7 March amended the export policy of broken rice from 'prohibited' to 'free' with immediate effect. The restriction had been in place since September 2022.

The ban led to a buildup of rice stocks and a sharp decline in international prices. Before the ban, India regularly exported 10 to 12 lakh tonnes of broken rice, but with the restriction in place, trade shifted to countries like Vietnam, Thai...