Why India Banned Export of Non-basmati White Rice and How it is Affecting Americans
The Indian government recently announced a ban on the export of non-basmati white rice “with immediate effect" to stabilize the volatile retail prices in the country. The move has raised concerns across countries in Africa, Asia and even in the United States and is expected to surge food prices globally.
Hyderabad: The Indian government recently announced a ban on the export of non-basmati white rice “with immediate effect” to stabilize the volatile retail prices in the country. The move has raised concerns across countries in Africa, Asia and even in the United States and is expected to surge food prices globally.
The Ministry of Consumer Affairs, Food and Public Distribution in a statement on July 20 said, “In order to ensure adequate availability of Non-Basmati White Rice in the Indian market and to allay the rise in prices in the domestic market, Government of India has amended the Export Policy of above variety from ‘Free with export duty of 20%’ to ‘Prohibited’ with immediate effect.”
The ban is not only expected to inflate the food prices globally, but also put a pressure on the food supply in the US and burden rice exporting countries like Vietnam and Thailand.
“The domestic prices of Rice are on an increasing trend. The retail prices have increased by 11.5% over a year and 3% over the past month,” the government said.
The export ban was aimed “to ensure adequate availability of non-basmati white rice in the Indian market and to allay the rise in prices in the domestic market,” the government added.
The rice production in the country had taken a hit due to the unexpected weather changes such as heavy monsoon rains in rice-producing states in the north and deficit rainfall in other parts of the country.
Heavy rain in northern India in the past few weeks has damaged the newly planted crops in Punjab and Haryana and many farmers have had to replant. In other rice-growing states, farmers have prepared paddy nurseries but are unable to transplant the seedlings due to inadequate rainfall, according to Reuters.
Non-basmati white rice constitutes about 25 percent of the total rice exported from the country and the ban on non-basmati rice will lead to lowering of prices in the country.
