The Centre has decided to limit the level of allowance for broken rice in exports to 2 per cent of the quantity to be exported. This is against the earlier limit of 16 per cent for parboiled rice and 25 per cent for raw rice. Now an exporter can claim only 2 kg of extra unbroken rice for 100 kg of exports, if 2 kg of rice to be exported can be claimed to be broken. The broken rice in that case can be sold in the domestic market.
Since this facility could be misused by exporters, this is being done to restrict diversion to the domestic market of non-basmati rice meant for export, government sources said.
Gurnam Arora, joint managing director of Satnam Overseas, told Business Standard: