Edible oil industry urges Centre not to extend export ban on de-oiled rice bran

Edible oil industry body Solvent Extractors Association of India (SEA) has requested the central government not to extend the ban on the exports of de-oiled rice bran, which is presently under prohibition.

The government initially banned the export of the commodity in July 2023 for four months and later extended it until March 2024, and then again by another four months till July.

The move was intended apparently to address inflation in milk prices and fodder costs.

De-oiled rice bran (DORB) is a by-product of the rice milling process that's made from the pressed cake of rice bran after oil is extracted from it. It is widely used as livestock feed.

India typically exports about 5 to 6 lakh tonnes of de-oiled rice bran, primarily to Vietnam, Thailand, and other Asian countries, establishing itself as a reliable supplier in the international market.

"De-oiled rice bran prices are now at a lower level and are likely to decrease further with increased availability of DDGS. In light of these facts and the sharp fall in prices, the Association has appealed to the government not to extend the prohibition beyond July 31, 2024," as per a letter written by the industry body's President, Ajay Jhunjhunwala to its members.

The industry body is of the view that India, over the past 30 years, has successfully developed an export market for de-oiled rice bran, primarily serving Vietnam, Thailand, Bangladesh and other Asian countries.

Meanwhile, India's overall oilmeal exports during April 2024 were 6 per cent lower on a yearly basis at 4.65 lakh tonnes. During the same month last year, the total exports were 4.93 lakh tonnes, industry data showed. Much of the decline in overall exports in April could be attributed to the prohibition of exports of de-oiled rice bran.

In break up, exports of soybean meal rose while that of mustard meal declined.

Oilmeals are the residue left over after the extraction of oil from oilseeds and it is widely utilized as livestock feed globally.

The total oilmeal exports during November-April, the first six months of the current marketing year, indicated the revival of soybean meal exports which jumped from 10.4 lakh tonnes to 16.6 lakh metric tons.

While rapeseed meal exports are down by nearly 23 per cent so far this season at 9.3 lakh tonnes. The industry body said last year the exports were higher as India could export substantial quantities due to price advantage vis-a-vis other supplying countries.

India is the world's second-largest consumer and leading vegetable oil importer, and meets 60 per cent of its needs through imports, primarily from Indonesia and Malaysia.

While oilseed production in India has witnessed growth over the years, it has not kept pace with consumption, leading to a continued reliance on imports. 

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