SEA seeks removal of export ban on rice bran, says it can yield economic benefits

The Solvent Extractors’ Association of India (SEA) has said that lifting the ban on the export of de-oiled rice bran (DORB) could yield significant economic, environmental and agricultural benefits.

In a letter to the Prime Minister and various ministers, Sanjeev Asthana, President of SEA, said India has a surplus of 13 lakh tonnes of rice bran after meeting 100 per cent requirement of all feed mills in the country. This surplus is going to waste and the country is losing ₹650 crore in revenue.

Stating that there is no shortage of DORB in India, he said in fact it is going waste and hurting the domestic economy and livestock sector as well.

Based on detailed calculations and stakeholder consultations, SEA presented a note to various ministries outlining the rationale for removing the export ban, highlighting the economic, environmental, and agricultural benefits that such a policy shift would bring.

Import substitute

On the economic benefits, it said wasted rice bran will be used to extract rice bran oil to reduce the import of edible oils and increased supply of DORB. Allowing exports can generate significant foreign exchange earnings, contributing to national economic growth. Rice millers and producers will gain access to international markets, leading to increased sales and profitability.

The note said that allowing exports of DORB can substantially increase foreign exchange earnings. For instance, India has recently lifted restrictions on rice exports, leading to a surge in export volumes and a positive impact on the economy. Similarly, exporting DORB could open new markets and revenue streams.

The recent surge in India’s rice stocks to a record high of 44.1 million tonnes demonstrates the potential for increased agricultural exports without compromising domestic needs. Being a byproduct, DORB could similarly find substantial demand abroad, it said.

Environmental advantages

On the environmental advantages, the note said DORB is utilized in producing high-value products such as animal feed, edible oils, and biofuels. Exporting byproducts encourages the development of value-added products, fostering industrial growth and innovation. The global demand for sustainable and alternative feed ingredients is rising, presenting an opportunity for India to position itself as a key supplier, it said.

Efficient utilization of DORB reduces agricultural waste, contributing to environmental sustainability. Exporting surplus DORB prevents stockpiling, which can lead to storage challenges and potential environmental concerns. This aligns with global efforts to minimise food waste and promote resource efficiency, it said.

Agri benefits

On agricultural benefits, the note said the enhanced market opportunities for rice bran will benefit farmers by increasing the value of their produce and providing better returns. The agro-industry sector will see growth, creating employment opportunities in rural areas.

Enhancing export opportunities for DORB can provide additional income sources for farmers, improving their livelihoods. The agricultural sector’s growth, driven by export demand, can lead to rural development and poverty alleviation.

Global trade practices

Mentioning that India is replaced in major markets by its competitors, the note said this is hurting all the efforts done in the last many years by the Indian industries. Removing the ban will align national policies with international trade norms, promoting better diplomatic and economic relations.

Highlighting the fact that many countries actively trade DORB without stringent restrictions, the note said Thailand and Vietnam export significant quantities of rice bran products. Aligning India’s policies with global trade norms by removing the export ban can enhance diplomatic relations and position India as a reliable supplier in the global market.

Asthana said removing this ban on export can unlock new opportunities for trade, industrial growth, and rural development. “Given the record-high rice stocks and the potential for increased agricultural exports, it is an opportune time to reconsider the export restrictions on DORB. Otherwise, the rice barn will go waste and will become an environmental liability in place for the wealth for the country,” he said.

DORB, a byproduct of rice milling, serves as a crucial ingredient in animal feed, particularly for cattle and poultry. The Centre banned the export of DORB on July 28, 2023, and extended from time to time. In February 2025, the Government further extended the export ban on DORB until September 30.

Published on April 16, 2025

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