The International Monetary Fund (IMF) has encouraged India to remove restrictions on export of non-basmati rice, saying that the country’s decision would put additional pressure global inflation.
The Indian government had banned the export of non-basmati white rice on July 20, in order to enhance domestic supply and stabilise local retail prices during the approaching festive season. The export policy was amended from ‘Free with export duty of 20%’ to ‘Prohibited’ immediately.
IMF’s chief economist, Pierre-Oliver Gourinchas, said in a press conference that given the environment, restriction in the export of rice would increase food prices globally. This could also lead to counter measures.