Indian government may ban about 80% of rice exports

India is considering banning the export of most varieties of rice other than basmati. About it informs Bloomberg.

Such measures may be taken by the Indian government due to rising domestic prices and fears of increased inflation. Retail rice prices in Delhi have risen by about 15% this year, compared to the national average of 8%.

India is the world’s largest supplier of rice. If the government bans exports, it will affect about 80% of India’s total Indian rice exports. Such actions can lead to lower domestic prices and, at the same time, to higher prices in the global market, where prices have already risen due to fears of El Niño conditions (a short-term increase in the temperature of the surface water layer of the Pacific Ocean in its tropical part).

India accounts for approximately 40% of the world’s rice trade. This crop is exported to more than a hundred countries. The largest consumers are China, Senegal, Benin, Côte d’Ivoire and Togo. The agency notes that some countries have already increased rice purchases due to fears of the decision of the Indian authorities on exports and El Niño.

In early July, the Food and Agriculture Organization of the United Nations reported that world food prices fell in June for the second month in a row after the first rise in April in a year. According to her, rice fell by 1.2%.

In 2022, Russia introduced a ban on the export of rice, rice cereals and feed amino acids in July last year. The Ministry of Agriculture clarified that this decision is aimed at ensuring the country’s food security, maintaining stable domestic prices for these products, as well as supporting the livestock and processing industries. In June, the department suggested extend this measure until the end of 2023.