2023-07-21 06:54:04
India is now banning exports of white rice as experts say a sudden reduction in supply could exacerbate global food inflation. (AFP)
[Financial Channel/Comprehensive Report]India has recently been affected by bad weather. Not only has the local tomato production dropped sharply and prices have soared, but the output of most crops is not as good as before. The Indian government announced on the 20th that it will ban the export of white rice other than Indian long rice with immediate effect to ensure the domestic market supply.
According to foreign media reports, food prices in India have risen due to the Russian-Ukraine war and bad weather. The Indian government stated that the retail price of local rice has risen by 3% within a month, and has also risen by 11.5% in the past year. Therefore, in order to ensure sufficient white rice supply in the market, an export ban will be implemented today to curb the rising price trend in the domestic market. Ships that have been packaged can continue to export.
Statistics show that more than 3 billion people around the world regard rice as a staple food, and nearly 90% of it is produced in Asia. Among them, India’s rice exports account for more than 40% of the world’s total. Recently, due to the impact of the El Niño phenomenon, the decrease in rainfall in Asia has affected production. The current global rice price has reached its highest level in 11 years.
In this regard, BV Krishna Rao, chairman of the Rice Exporters Association, said that since the Russo-Ukrainian war, India’s influence on the global rice market will far exceed Ukraine’s influence on the wheat market, and said that buyers cannot find alternatives to goods from other countries, so the sudden implementation of the export ban has caused supply to shrink, which may lead to increased food inflation.
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