Read why India bans rice exports
Attempting to impede domestic inflation is why India bans rice exports, i.e., non-basmati white rice.
India has immediately banned non-basmati white rice shipments to impede domestic inflation after heavy precipitations hit domestic crops, raising fears of further increases in international food prices.
India bans rice exports amid global food prices rise:
The veto comes after a 20% duty on global exports introduced in September failed to impede foreign demand, which has skyrocketed after extreme weather conditions hit production in nations and the market rose due to grain supply disruptions caused by Russia’s attack on Ukraine.
India is the planet’s largest rice exporter, accounting for around 40% of international shipments. While the ban does not apply to higher-grade basmati rice – India’s renowned variety – non-basmati white rice accounts for nearly 25% of exports.
Global sales of Indian rice zoomed by 35% in the year to June, contributing to a 3% climb in domestic prices over the past month alone. According to the Ministry of consumer affairs, food and Public Issuance, people in India now pay 11.5% more for rice than a year before.
The Indian government said the new prohibition, imposed on Thursday night, would “ensure adequate availability of non-basmati white rice in the Indian market” and “lead to lowering prices for the consumers in the country”.
Skyrocketing food inflation has put pressure on the BJP government in Delhi in the run-up to national elections next year and state-level elections in the months to arrive.
Russia’s invasion of Ukraine has already hit international food supplies, which has raised commodity and grain prices worldwide.
There are new fears that a recent international food problem could be on the horizon after Russia pulled out of a year-old UN-brokered pact that allowed Ukraine to export grain through the Black Sea, saying its decision to leave was final.
