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India bans non-Basmati rice exports

  • By Al Mayadeen English
  • Source: News Websites
  • 20 Jul 2023 19:32
2 Min Read

India exports rice to about 100 nations, the most important of which are Benin, China, Senegal, Cote d'Ivoire, and Togo.

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  • India bans non-Basmati rice exports
    A farmer with his rice crop in a paddy field on the outskirts of Guwahati, India. (AP)

India, the world's largest rice exporter, has prohibited imports 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 grain immediately. The letter details that the approved shipments will depend on permission from the Indian government to specific nations in order to satisfy their food security needs.

The country was mulling a ban on most types of rice, which may push up already-high worldwide prices when the disruptive El Nino weather pattern returns.

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India considers banning most rice exports on inflation fears

Rice is essential for almost half the worldwide population, with Asia using around 90% of the global supply. Based on expectations that the return of El Nino may harm crops, prices have drastically increased in the last two years.

Following the outbreak of the Ukraine war, India prohibited broken rice exports and slammed a 20% levy on shipments of white and brown rice last year. The nation has limited wheat and sugar exports. Representatives from the food, trade, and finance ministries did not reply to emails or text messages requesting comment.

India exports rice to about 100 nations, the most important of which are Benin, China, Senegal, Cote d'Ivoire, and Togo.

Regarding the prospective ban, shares of Indian rice millers plummeted. KRBL Ltd., the country's largest rice business, fell 3.7% before cutting losses. Chaman Lal Setia Exports Ltd. fell as much as 1.4%, Kohinoor Foods Ltd. was down 2.9%, and LT Foods Ltd. fell 4.4%.

  • India
  • El Nino
  • Agriculture
  • rice exports

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