India, the world’s largest exporter of rice, has banned the export of non-basmati white rice. ” with immediate effect “On Friday, July 21, the government announced that its decision could lead to an increase in international rice prices.
This ban must be allowed ” to guarantee “ provisioning ” Appropriate “ for Indian consumers andReducing price hikes in the local marketIndia’s Ministry of Consumer Affairs and Food said in a statement Thursday evening.
sequel after announcement
Drought, war and climate
India’s exports of non-basmati white rice jumped 35 percent year-on-year in the second quarter, the ministry said.
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In September, after a major drought in its major rice-producing regions, India had already banned exports of broken rice (low-priced rice, with the grain broken accidentally or not) and imposed a 20% tax on exports of high-quality rice.
International prices for rice, a major staple in the world, have risen sharply due to the Covid pandemic, the war in Ukraine and the impact of the El Niño weather phenomenon on rice yields.
‘risk of worsening food insecurity’
India’s exports of non-basmati white rice account for about a quarter of India’s total rice exports. Last year, the country exported 10.3 million tons of non-basmati white rice.
sequel after announcement
India’s decision, which alone accounts for more than 40% of global rice shipments, could happen “Risk of worsening food insecurity in countries heavily dependent on rice imports”she warned in a note to Gro Intelligence, which analyzes data on raw materials.
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Grow Intelligence added that African countries, Turkey, Syria and Pakistan are expected to suffer from the ban, as they are already facing high inflation in food prices.
No reserves to compensate
According to Rabobank analyst Oscar Tjakra, other rice suppliers do not have reserves to compensate for the halt in Indian exports of non-basmati white rice.
outside India, The main exporters are Thailand, Vietnam and to some extent Pakistan and the United States.the analyst told AFP. but “They won’t have enough rice to replace it.” He warned against exporting Indian quantities.
Obviously, this will contribute to inflation in the world, because rice can be used as a substitute for wheat. »
