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📦 Broken rice

Broken rice

HS Code:

📦

Overview

Broken rice, classified under HS Code 1006.40, refers to fragments of rice grains that are broken during milling and processing. It is often used in food processing industries for products like rice flour, noodles, and as animal feed. Broken rice is a significant commodity in global agricultural trade, particularly in regions where rice is a staple food. It is generally priced lower than whole grain rice, making it an affordable option for many markets.

Total Trade Volume

Approximately 10 million metric tons

Data from 2022

Source

United Nations Comtrade Database and International Trade Centre (ITC)

Tariff Analysis

Average Rate

10-15% ad valorem

Highest Rate

35% (applied by certain African countries to protect local markets)

Lowest Rate

0-5% (under free trade agreements like ASEAN or EU preferences)

Common Restrictions

  • Import quotas in some African and Middle Eastern countries
  • Sanitary and phytosanitary (SPS) requirements for quality control
  • Non-tariff barriers like licensing requirements
  • Seasonal import bans to support domestic farmers

Market Trends

Rising demand in West Africa

Increased exports from Thailand and Vietnam due to affordability and preference for broken rice in local cuisines

2021-2022

Shift to value-added products

Growing use of broken rice in processed foods and animal feed, boosting demand in industrial markets

2020-2022

Climate impact on production

Erratic weather patterns in key producing countries like Thailand and Vietnam affecting supply and prices

2019-2022

Recent Developments

India's Export Restrictions on Broken Rice

In September 2022, India imposed a ban on broken rice exports to ensure domestic food security amid rising prices and lower production forecasts.

September 2022

Significant supply shortages in importing countries like Senegal and Bangladesh, leading to price spikes and increased reliance on Thailand and Vietnam.

ASEAN Trade Agreement Updates

New tariff reductions under the ASEAN Free Trade Area (AFTA) have facilitated greater trade of broken rice among member countries.

January 2023

Enhanced market access for exporters like Thailand and Vietnam, boosting trade volumes within the region.

West African Import Surge

Countries like Senegal and Nigeria have increased imports of broken rice due to growing urban populations and changing dietary preferences.

Mid-2022

Higher demand has led to stronger trade ties with Asian exporters, though local production policies may introduce future restrictions.