India’s ban on rice exports raises fear of global food price rises
“India has banned non-basmati white rice exports to curb domestic inflation, raising fears of further increases in global food prices just days after wheat and corn prices were sent climbing by Russia’s termination of a key grain deal.
The immediate ban, introduced after heavy rains hit domestic crops, follows the failure of a 20% duty on international exports introduced in September to curb foreign demand, which has soared after extreme climate conditions hit production in countries.
India is the world’s largest rice exporter, accounting for more than 40% of global shipments. While the ban does not apply to higher-grade basmati rice – India’s best-known variety – non-basmati white rice accounts for about 25% of exports.
International sales of Indian rice soared by 35% in the year to June, contributing to a 3% rise in domestic prices over the past month alone. People in India are paying 11.5% more for rice than a year ago, according to its ministry of consumer affairs, food and public distribution.
The Indian government said the ban, introduced on Thursday evening, would “ensure adequate availability of non-basmati white rice in the Indian market” and lead to lowering of prices for domestic consumers.”
AC