India banned the export of non-basmati white rice, on July 20, to curb surging domestic food prices and “ensure adequate domestic availability at reasonable prices”. The move has resulted in a lot of concern globally. The International Monetary Fund (IMF) has asked the Indian government to lift the rice ban, citing potential global inflation as the reason.
India is the largest global exporter of rice and accounts for over 40 per cent of the total trade in terms of volume. The country exports rice to over 140 nations. The Indian government, in a separate notification, also banned the export of de-oiled rice bran till November.
Regarding the ban on rice export, the government has stated that shipments of non-basmati white rice will be permitted to meet the food security needs of other nations if their governments request it, according to a statement.
India’s rice ban is expected to impact a number of countries. Here are the nations which could be most affected:
Malaysia:
According to a Barclays report cited by CNBC, Malaysia imports a significant portion of its rice needs from India and could be vulnerable to the export ban.
Singapore: Singapore is also expected to be hard-hit by India’s rice export ban. The country is seeking an exemption from the Indian government for rice exports.
Djibouti: The African nation is particularly vulnerable to famines as it is situated in the Horn of Africa. According to BMI, a Fitch Solutions research unit, Djibouti can be one of the worst affected nations with a halt in rice export.
Qatar: The prosperous Middle-East nation is highly dependent on imports of rice from India. The rice export ban can lead to a sharp rise in prices in the country, as per BMI.
Iraq: Iraq is one of the largest importers of Indian rice. The country has seen periodic protests over the last few years due to political crises and unemployment. In this case, a rice export ban can worsen the situation.
India exported 22.2 million tonnes of rice in 2022, of which 17.86 million tons were non-basmati rice. The major rice-producing states in India are Punjab, Chhattisgarh, Odisha, Andhra Pradesh, West Bengal and Uttar Pradesh.
(Edited by : Sudarsanan Mani)
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