India holds a prestigious position as the largest exporter of rice in the world, and this distinction has been achieved through a combination of factors. Rich agricultural heritage, favourable climate and extensive farming practices aid this. However, the export of non-basmati white rice is now prohibited by the Indian government. Additionally, the rice ban may affect almost 80% of India’s rice exports, lowering rice prices in India.
This Ban On Export Has Generated Panic Buy
Chaos in Bay Area California for #rice #Costco @ndtvfeed @timesofindia #California #bayarea Costco, how can u let people take more than 2 bags? pic.twitter.com/zm9iZV3Snw
— bimmer2020 (@bimmerwhite) July 21, 2023
Presently, India has banned non-basmati white rice exports with immediate effect late Thursday. This is the latest in the government’s efforts to control rising food costs. India is the world’s largest rice exporter, accounting for more than 40% of worldwide rice commerce, and the world’s second-largest production behind China.
However, this has now led to a state of panic buying in the US. Many Indians have flocked to Indian businesses and Costco to stock up on rice bags till the ban is lifted. However, many Indian retailers have restricted their sales to the ‘1 person – 1 bag’ formula. Furthermore, several businesses raised their costs from $32 to $47, which was not more than $22 previously.
The unequal distribution of rainfall in the country’s primary rice-growing areas has caused this. Prices have risen by up to 20% in the previous 10 days. Videos have gone viral all over the internet for rice bags.
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India Bans Export Of Non-Basmati White Rice
According to an article by CNBC, the Ministry of Consumer Affairs views that the ban would assist in the adequate availability of non-basmati white rice in India. While also allaying the rise in prices in the domestic market. The prohibition might potentially worsen food poverty in rice-dependent countries, according to recent research issued before the declaration by agro analytics firm Gro Intelligence.
According to Bloomberg, the Indian government is considering prohibiting the export of most rice varietals. The prohibition may affect around 80% of India’s rice exports, reducing rice prices inside India, but may have a detrimental influence on world pricing. Rice export prices in India rose for the seventh week in a row last week, reaching a five-year high.
Moreover, due to bad weather, tomato prices in India have risen more than 300% in recent weeks. According to a Reuters survey, the country’s inflation would likely reach 4.58% year on year due to rising food costs.
What do you think about this rice ban?
Cover image credits: Representational image from Canva
First Published: July 22, 2023 2:17 PM