The Solvent Extractors’ Association of India (SEA) has urged the Government to urgently re-evaluate the ban on the export of de-oiled rice bran DORB).
In a letter to various Central ministers, SEA said that this decision could have far-reaching negative consequences for multiple sectors.
Sanjeev Asthana, President of SEA, said India is a protein (oil meal) surplus country and the total export of DORB was less than 10 per cent of its production. Restriction on its export has adversely affected processors and exporters along with paddy farmers, hindering them from realizing better returns on their produce.
By exporting the meals (DORB and other meals like soya and rapeseed) industry benefits from easy clearance of surplus meals. This leads to sustained processing, better capacity utilization, continuous vegetable oil production, increased employment, and significant value addition along with earning of valuable foreign exchange.
Stating that India has successfully developed export market for DORB over the last 30 year, he said it primarily serves Vietnam, Thailand, Bangladesh and other Asian countries, positioning as a reliable supplier in the international market.
“This abrupt ban on export of DORB has given opportunity to other competing countries to capture Indian export market,” he said.
Eastern states, particularly West Bengal and Odisha, are significant producers of DORB. The cattle feed industry remains underdeveloped in this part of the country and there is limited demand.
The exorbitant freight charges to move DORB from Eastern India to major consuming areas such as Southern or Western parts of India make exports the most convenient and cost effective way of disposal for DORB in the region, he said.
Rice bran processors in Eastern India are facing crisis to dispose of DORB and forced to close down or reduce capacity utilization. This is adversely impacting the rice milling industry and also reducing rice bran oil production.
He said the reason for export ban on DORB in July 2023 was higher milk prices because of higher animal feed cost. However, DORB’s cost in milk price is nominal.
Asthana said that there was almost no reduction in milk prices rather it increased across the country since imposition of export ban on DORB in July 2023.
Meanwhile, the price of DORB reduced by about ₹7000 per tonne from around ₹17,000 per ton prevailing on July 28 2023 (date of issuing export ban notification) to ₹10,000 per tonne at present.
It is likely to go down further with increased availability of rice bran for processing due to bumper new season paddy crop. “We are still of the view that this ban is not related to reduction in milk prices but negatively impacting the industry,” he said.
He attributed oversupply of dried distiller grain solids (from maize and rice), a by-product of ethanol industry, as another factor to consider for lifting of export ban on DORB.
This DDGS (dried distiller grain solids) is competing as an alternative raw material for feed industry (cattle, poultry and aqua) in quantity and pricing with other oil meals like soya, rapeseed and de-oiled rice bran.
There is a huge supply of maize DDGS in the market currently at around ₹12-14 a kg. This because of the government policy on ethanol manufacturing and cost plus pricing of ethanol purchase, he said.
Being a waste by-product, this prevailing lower cost and excess supply of DDGS has replaced other meals greatly and created a further surplus situation in meals / DORB. As per industry estimates, the current production of DDGS is around 2 million tonnes (mt) which is going to increase to 3.5-4 mt in a year’s time, he said.
If the exports of de-oiled meals, including DORB, are not encouraged / opened then there may be a serious glut and further price reduction in DORB and other meals (soya and rapeseed).
This may also negate the MSP increase in oilseeds by the Government and prices of oilseeds may go down much below from their support level in absence of purchased by government agencies, he said.
The SEA President requested the government to lift the ban imposed on export of de-oiled rice bran immediately in the larger interest of all stake holders.