India, the world’s biggest rice exporter, banned shipments of non-basmati white rice to maintain domestic prices at comfortable levels ahead of the general election due in early 2024.
(Bloomberg) — India, the world’s biggest rice exporter, banned shipments of non-basmati white rice to maintain domestic prices at comfortable levels ahead of the general election due in early 2024.
The government halted overseas sales of the grain with immediate effect, according to a notification by the Directorate General of Foreign Trade, confirming a Bloomberg report published on July 13. Shipments will be allowed on the basis of permission granted by the Indian government to other countries to meet their food security needs and based on request of their governments, it said.
Although the move could soften domestic prices of the staple, global costs could advance further at a time when a return of the El Niño weather pattern is already raising concerns about crop damages.
The latest move by the South Asian nation, which has already imposed restrictions on wheat and sugar exports, would affect a large portion of India’s rice shipments. The grain is a staple for about half of the world’s population, with Asia consuming about 90% of global supply.
India, which accounts for about 40% of the global rice trade, banned shipments of broken rice last year and imposed a 20% duty on exports of white and brown rice after Russia’s invasion of Ukraine sent prices of food staples like wheat and corn soaring. The nation supplies rice to more than 100 countries.
India is grappling with high prices of grains, fruits and vegetables. Retail rice prices in Delhi have climbed about 15% this year while the average nationwide price has gained more than 8%, according to data from the food ministry. Prices of tomatoes in some areas of Delhi have surged more than five-fold since the start of 2023 as heavy rains in several areas have damaged crops and affected truck movements.
–With assistance from Atul Prakash.
(Updates with local price increase in sixth paragraph)
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