Mon. Jun 17th, 2024
India's Shocking Move to Halt Rice Exports Sparks Global Economic Fears!

India’s Shocking Move to Halt Rice Exports Sparks Global Economic Fears!

India bans export of rice over concerns of inflation, Rice prices may increase further

India’s Shocking Move to Halt Rice Exports Sparks Global Economic Fears!

India has imposed an immediate ban on the export of non-basmati white rice in an attempt to control high food prices. The Consumer Affairs Ministry said the ban is aimed at ensuring adequate availability of non-basmati white rice within India and to stabilize domestic market prices.

India is world largest rice exporter

As the world’s leading rice exporter, which accounts for more than 40% of global trade, the move could push prices already high, exacerbated by a previous ban on shipments of broken rice in September.

Analysts expect the ban to significantly reduce global rice supplies, especially affecting export-dependent countries like Bangladesh and Nepal, which are major destinations for Indian rice exports.

Rice prices may increase further

A decrease in global rice supply contribute to a potential price increase, but a panic reaction and speculation on global rice markets could make the situation worse.

Currently, rice prices are already at their highest level in a decade due to limited supplies. Rice has become an attractive option as prices of other staple grains rise after Russia’s invasion of Ukraine in February 2022.

Impact: as Russia moves out of the Black Sea grain Deal

Recently, wheat prices also rose after Russia pulled out of the Black Sea grain deal that was aimed at averting a global food crisis by allowing Ukraine to continue exporting its grain.

Find Director General of Foreign Trade notification here Directorate General of Foreign Trade | Ministry of Commerce and Industry | Government of India (dgft.gov.in)

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