India, the world's largest rice exporter, has banned exports of non-basmati white rice in order to keep local prices stable ahead of the general election in early 2024.
According to a letter from the Directorate General of Foreign Trade, the government prohibited international sales of the grain with immediate effect, corroborating a Bloomberg article published on July 13. Shipments will be permitted if the Indian government grants permission to other nations to meet their food security needs and if their governments request it, according to the statement.
Although the decision may lower domestic prices for the staple, worldwide prices may rise further at a time when the return of the El Nio weather pattern is already creating fears about crop damage.
The latest measure by the South Asian country, which has already imposed limitations on wheat and sugar exports, would affect a substantial chunk of India's rice shipments. The grain is a staple for almost half of the world's population, with Asia using roughly 90 percent of the worldwide supply.
India, which accounts for about 40 percent of the global rice trade, banned shipments of broken rice last year and imposed a 20 percent 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 percent this year while the average nationwide price has gained more than eight percent, 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 inputs from Bloomberg)
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