NEW DELHI: The edible oil industry association has criticised the government’s decision to impose a ban on de-oiled rice bran exports stating that it would impact the Indian industry and farmers in the long run.
The Solvent Extractors’ Association of India, an industry association of vegetable oil, said that the ban would not help contain rising milk prices and that it would hurt paddy growers of West Bengal, a significant producer of rice bran.
Ajay Jhunjhunwala, President of the Solvent Extractors’ Association (SEA), said that "the ban could have far-reaching negative consequences for multiple sectors, and we urgently request a re-evaluation of this policy."
“India has positioned itself as a reliable supplier in the international market, and this decision will affect India’s export business,” said Jhunjhunwala, adding that "an abrupt change in export policy risks damaging this hard-earned market standing."
The government believes that rising fodder prices (with DORB being a major component) are a major reason behind the rising prices of milk and milk products.
"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% reduction,” argued Jhunjhunwala.
De-oiled Rice Bran (DORB) is derived when crude oil is extracted from rice bran. DORB is commonly used to produce animal nutrition products catering to cattle, poultry, horse, pet care, aquaculture (aquafeed), and swine industries.
DORB is exported to Vietnam, Thailand, Bangladesh and other Asian countries. India exports less than 10% of the total production of DORB.
West Bengal is a major producer of DORB but its cattle feed industry remains underdeveloped. There is limited demand for rice bran extraction in Eastern India, the industry body mentioned.
Local freight charges to move DORB from Eastern India to Western and Southern India are high, consequently jeopardising the whole industry.
“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,” concluded Junjunwala.
India imposed a ban on DORB exports on July 28, effective until November 30, 2023.
The Centre moved exports of DORB into the ‘prohibited’ category from the previously unrestricted ‘free’ category, according to a notification issued by the Directorate General of Foreign Trade (DGFT) on July 28.