"Global food prices continue to rise"?, India issues another ban on India | exports | globally
According to Reuters in New Delhi on July 20th, India ordered the suspension of its largest export category of rice on Thursday. This move will reduce the shipment volume of the world's largest rice exporting country by about half, which has raised concerns that global food prices will further increase. The Modi government said it will implement an export ban on white rice that is not Indian fragrant rice. Previously, the late but heavy rainy season rainstorm caused serious damage to crops, and the retail price of rice rose by 3% in a month.
India accounts for over 40% of global rice exports, and other exporting countries have lower inventories. This means that any decrease in Indian rice exports could lead to an increase in grain prices. Due to Russia's deployment to Ukraine last year and unpredictable weather, grain prices have been pushed up.
In a statement, the Indian Ministry of Food said, "In order to ensure sufficient supply of white rice for non Indian fragrant rice in the Indian market and alleviate the upward trend of domestic market prices, the Indian government has adjusted its export policy."
Last year, India exported a total of 22 million tons of rice, of which approximately 10 million tons were white and broken rice from non Indian fragrant rice. On Thursday evening, the government clarified that steamed rice is not within the scope of the ban. In 2022, India exported 7.4 million tons of steamed rice.
This indicates that the Indian government led by Prime Minister Modi is very sensitive to rising food prices before next year's general election. After restricting rice exports in September 2022, the Modi government also extended the validity period of the wheat export ban. With the decline in sugarcane production, India has also restricted sugar exports this year.
"The speed at which India will have an impact on the global rice market will be much faster than the speed at which Ukraine will have an impact on the global wheat market after the outbreak of the Russo Ukrainian War," said B.V. Krishna Rao, President of the Rice Exporters Association
Global rice prices have hovered at their highest point in 11 years.
This ban will take effect from July 20th, but ships loading cargo will be allowed to export.